Name ___________________________________ Score :_______________

1. A credit card is the same is the same as a debit card

True false
2. From the borrower’s perspective, an interest rate is the cost of borrowing money usually
determined as a percentage of the amount borrowed.
True false
3. To keep your credit card interest payments as low as possible,
a. Pay the minimum monthly payment
b. Try to pay off your credit card bill in full every month
c. Pay off your credit card bill only after saving enough money to pay it, regardless of
the time duration
d. Switch to a different credit card that has a higher interest rate
4. Comparison shopping for a car is necessary because___________________.
a. Each dealer sells cars with different colors.
b. Lenders want to be sure consumers get the best price
c. The price for the car can vary a great deal
d. It is a requirement to qualify for car insurance
5. Purchasing power decreases and it costs more money to buy goods when there is:
a. A bear market
b. Inflation
c. Deflation
d. A bull market
6. What strategy can help a person achieve her goal to buy a house?
a. Using credit cards to pay for the expenses
b. Paying large purchases in cash
c. Following a budget that allows for savings
d. Applying more credit cards to increase her credit score
7. A college student has to live on a tight budget. Before making a decision to buy the
newest cell phone, which question should he ask himself first?
a. Is the new cell phone cheaper than the one being used?
b. Is the new cell phone on sale?
c. Is the new cell phone a need or a want?
d. Will my friends like the new cell phone?
8. Which of the following quotes is sound financial advice?
a. “ He who hesitates is lost”
b. “ A penny saved is a penny earned”
c. “don’t put off today what can be done tomorrow”
d. “The window of opportunity may only open once”
9. Fixed expenses include:
a. Food
b. Vacations
c. Entertainment
d. Rent
10. What holds true when it comes to income and expenses?
a. Income =expenses
b. Income> expenses
c. Income< Expenses
d. Income + Expenses = Savings
11. These are the purposes of an emergency fund, except:
a. To spend it on sudden illnesses
b. To spend it on a sudden loss of job/income
c. To spend it on sudden purchases
d. To spend it on sudden accidents.
12. What should you invest?
 a. Stocks
b. Education
c. Business
d. All of the above
13. What is/are the building blocks of financial freedom?
a. Proper protection on Life, Health, disability
b. Manage Debt and reduce liability
c. Have an emergency fund
d. Build up savings and investments
e. All of the above’
14. Suppose you have Php 100 in a savings account earning 2 percent interest in a year. After
five years, how much would you have?
a. More than Php 102
b. Exactly Php 102
c. Less than Php 102
d. None of the above
15. Buying a single company’s stock usually provides a safer return than a stock mutual
fund.
True False