Nuthrive Financial Literacy Quiz
Test your personal finance knowledge
- 1.If you give something up as a result of making a decision, you are incurring a(n) ______
- A.
Liquidity Problem
- B.
Net Cost
- C.
Opportunity Cost
- D.
None of the above
- 2.Which are examples of fixed expenses?
- A.
Rent, insurance & loan payments
- B.
Utilities, rent & restaurants
- C.
Music purchases, sports games, insurance
- D.
Tuition, rent & concerts
- 3.Being on a budget means...
- A.
You pay bills every month at the due date
- B.
You plan your expenses to be less than or equal to your income
- C.
You are earning enough money to be able to live well
- D.
Your bills are generally paid by every due date
- 4.In the case of Direct Stafford student loans, when are you required to begin paying off your debt?
- A.
As soon as you enroll in college
- B.
6 months after you leave college or drop below half-time enrollment
- C.
When you become employed full-time
- D.
Once you are no longer dependent on your taxes
- 5.Suppose you deposit $100 in a savings account earning 2% interest a year. After five years how much would you have?
- A.
Exactly $102
- B.
Less than $102
- C.
More than $102
- 6.Which of the following techniques will a bank most likely use to reduce potential risk when giving a credit card to someone with no credit history?
- A.
It will charge twice the interest rate it charges other cardholders
- B.
It will start the customer off with a smaller line of credit to see how they handle the account
- C.
It will require a family member to pledge their home
- D.
All of the above
- 7.Why is your credit score important?
- A.
It can affect your interest rates if you have to borrow money for a car or home
- B.
It can have an impact on whether you can finance major purchases
- C.
It can determine whether you can be approved for credit cards
- D.
All of the above
- 8.If you buy a company's stock...
- A.
You have lent money to the company
- B.
You own a part of the company
- C.
The company will return your original investment to you with interest
- D.
You are liable for the company's debts
- 9.If you invest in a higher risk stock as opposed to a lower risk stock, you would expect ___ return for your investment.
- A.
A higher
- B.
A lower
- C.
The same
- 10.In which situation(s) is it smart to borrow money to cover a large expense?
- A.
When your favorite store is having a sale
- B.
When you desperately need a week of vacation
- C.
When you need to buy/lease a car to get a better paying job
- D.
All of the above
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