Choose the best answer for each item.

1. What is Financial Literacy?

a. Is important, because without a proper understanding of personal finance, and the skills
necessary to manage money effectively, financial success becomes extremely
improbable.
b. Is anything you own outright that can provide future monetary value.
c. Is having the knowledge and understanding of financial principles to manage money in
a wise, and effective manner.
d. Is about knowing how to pay your bills and manage your household expenses.
2. What is liability?
a. Is anything of monetary value that you owe to somebody else, whether that be a bank,
organization, or individual.
b. Is anything you own outright that can provide future monetary value.
c. Is a set plan for what you will do with your money, and the compass that will guide
your financial decisions and behavior.
d. Is any amount of money that you owe to somebody else.

3. This is an item of economic value that serves as a means for a lender to recoup the amount
of money borrowed in the case of a borrower that fails to pay back a debt in accordance
with the agreed upon terms.
a. Debt
b. Collateral
c. Asset
d. Finance

4. Who needs financial literacy skills?

a. Entrepreneurs
b. Businessmen
c. Employees
d. Everyone

5. It is the process of setting aside a portion of your income to either, act as a buffer between
your current circumstances and future uncertainty, or to prepare for a future purchase.
a. Saving Money
b. Investing
c. Budgeting
d. Financing
6. It is the set schedule by which a borrower will pay down a loan–including any associated
interest, taxes and fees–over a series of fixed installments.
a. Loan Term
b. Secured Debt
c. Amortization
d. Unsecured Debt

7. It is one of the quickest ways start struggling with money is to take on debt.
a. Less Debt
b. Higher Net Worth
c. Less Financial Struggle
d. Net Worth

8. It is anything you own outright that can provide future monetary value.
a. Income
b. Net Worth
c. Asset
d. Money

9. It is knowing how to manage money, and actually doing it.

a. Finance
b. Financial Literacy
c. Entrepreneurship
d. Business

10. It is the holy grail of income, because it doesn’t require you to actually be present to earn
it.
a. Active Income
b. Passive Income
c. Asset
d. Monetary Value