Financial Literacy Final Exam
questions with verified answers
False - correct answer ✔✔ Financial literacy means knowing how to make financial decisions.
True - correct answer ✔✔ A misconception is a mistaken idea or thought.
True - correct answer ✔✔ An individual's irresponsibility may affect the community.
True - correct answer ✔✔ A financially-responsible person reacts quickly to problems.
False - correct answer ✔✔ Written goals should be simple and short.
save you money - correct answer ✔✔ Becoming financially literate is important because it can
_____.
Amy wants to invest money for two years. She doesn't know which investment is best for her.
What should Amy do? - correct answer ✔✔ She should become more knowledgeable by talking
with a financial adviser, reading books, or by taking a class.
When prioritizing goals, how should you order them? - correct answer ✔✔ by order of
importance
Read the following descriptions. Decide who demonstrates a bad habit. - correct answer ✔✔
Allison throws away most of her receipts and she does not have a place to organize financial
documents.
, A financially-responsible person _____. - correct answer ✔✔ -has a budget
-spends less than they make
-saves their money
-pays bills on time
An example of financial irresponsibility is _____. - correct answer ✔✔ making an impulse
purchase
Decide whether the following sources are reliable or unreliable. - correct answer ✔✔
information from your credit union about car loans: reliable
www.fueleconomy.gov: reliable
a Web site selling financial services: unreliable
a book written in 1978 about tax laws: unreliable
television show that features financial experts: reliable
person on the IRS-sponsored tax hotline: reliable
Emily, a college student, reads an article in Money magazine. The author has a degree in
finance. The article is about getting a home equity loan. This information is _____. - correct
answer ✔✔ reliable but irrelevant
John wants to know how much he should pay for a particular used car. What should John do? -
correct answer ✔✔ He should find reliable and relevant information; perhaps look up
information in the Kelly Blue Book
a process for making financial decisions is called - correct answer ✔✔ PACED
Lisa has the following assets and liabilities. What is her net worth?
questions with verified answers
False - correct answer ✔✔ Financial literacy means knowing how to make financial decisions.
True - correct answer ✔✔ A misconception is a mistaken idea or thought.
True - correct answer ✔✔ An individual's irresponsibility may affect the community.
True - correct answer ✔✔ A financially-responsible person reacts quickly to problems.
False - correct answer ✔✔ Written goals should be simple and short.
save you money - correct answer ✔✔ Becoming financially literate is important because it can
_____.
Amy wants to invest money for two years. She doesn't know which investment is best for her.
What should Amy do? - correct answer ✔✔ She should become more knowledgeable by talking
with a financial adviser, reading books, or by taking a class.
When prioritizing goals, how should you order them? - correct answer ✔✔ by order of
importance
Read the following descriptions. Decide who demonstrates a bad habit. - correct answer ✔✔
Allison throws away most of her receipts and she does not have a place to organize financial
documents.
, A financially-responsible person _____. - correct answer ✔✔ -has a budget
-spends less than they make
-saves their money
-pays bills on time
An example of financial irresponsibility is _____. - correct answer ✔✔ making an impulse
purchase
Decide whether the following sources are reliable or unreliable. - correct answer ✔✔
information from your credit union about car loans: reliable
www.fueleconomy.gov: reliable
a Web site selling financial services: unreliable
a book written in 1978 about tax laws: unreliable
television show that features financial experts: reliable
person on the IRS-sponsored tax hotline: reliable
Emily, a college student, reads an article in Money magazine. The author has a degree in
finance. The article is about getting a home equity loan. This information is _____. - correct
answer ✔✔ reliable but irrelevant
John wants to know how much he should pay for a particular used car. What should John do? -
correct answer ✔✔ He should find reliable and relevant information; perhaps look up
information in the Kelly Blue Book
a process for making financial decisions is called - correct answer ✔✔ PACED
Lisa has the following assets and liabilities. What is her net worth?
