Financial Literacy Quiz for High School Students
Questions: 16 · 10 minutes
1. A student owns shares in only one technology company and wants to reduce company-specific investment risk. Which change most directly improves diversification?
Buying more shares of the same company after a price drop
Keeping the same shares but checking their price daily
Choosing investments based only on recent performance
Moving some money into a broad fund holding many companies
2. Marcus plans to use $600 for a laptop in six months. Where would the money generally be most suitable if he wants low risk and easy access?
A single company's stock
A 12-month certificate with an early-withdrawal penalty
A retirement account with withdrawal restrictions
An insured savings account
3. When you make a standard debit-card purchase, where does the money typically come from?
Funds in the linked checking account
A loan automatically issued by the card network
The cardholder's credit report
Interest earned by the linked account
4. Sofia chooses to attend a concert instead of working a shift that would pay $80. In this decision, what is the clearest opportunity cost of attending the concert?
The concert's advertised ticket price
The amount of money currently in her bank account
The $80 in wages she gives up by missing the shift
The total income earned by everyone at the concert
5. Lena earns $480 before deductions. Her paycheck lists $72 in taxes and other deductions. What is her net pay?
$72
$552
$480
$408
6. When comparing savings accounts with similar fees and access, which figure best shows the yearly return after accounting for compounding?
The account's minimum balance
The annual percentage yield, or APY
The bank's prime rate
The account's withdrawal limit
7. An auto insurance policy has a $500 deductible. A covered repair costs $1,800, and no other limits apply. How much would the insurer generally pay?
$1,300
$1,800
$500
$2,300
8. Which habit most directly supports a positive credit payment history?
Applying for several new credit accounts at once
Keeping credit cards near their limits
Paying required bills on time
Using only cash so no payment activity is reported
9. If someone repeatedly makes only the minimum payment on a credit card and adds no new purchases, what is the usual result?
The card issuer stops charging interest
Payoff generally takes longer and costs more interest
The remaining debt becomes interest-free
The credit limit immediately increases
10. Two lenders offer loans for the same amount and repayment term, with no additional fees. Which offer generally costs less?
The loan with the lower APR
The loan with the larger monthly payment regardless of rate
The loan advertised by the larger company
The loan with the higher APR
11. Nia expects $900 of monthly income. She has $500 in fixed expenses and wants to save $150. What is the most she can plan for variable spending without exceeding her income?
$750
$400
$550
$250
12. Evan's monthly budget is short by $60. Which change would directly balance the budget without borrowing or delaying an existing bill?
Paying the $60 with a credit card
Moving the unpaid expense into next month's budget
Reducing optional spending by $60
Ignoring the shortage until the account is overdrawn
13. Which source of college funding usually does not have to be repaid when its terms are met?
A private student loan
A scholarship
A credit-card cash advance
An unsubsidized student loan
14. Maya invests $500 at age 16, while Jordan invests $500 at age 18. Both earn the same positive compounded return and make no withdrawals. By age 25, who should have more from that deposit?
They must have equal balances because they deposited equal amounts
Jordan, because investing at an older age creates a higher return
Maya, because her money had more time to compound
Jordan, because later deposits always compound faster
15. Inflation is 5% for the year while money in a savings account earns 2%. What most likely happens to that money's purchasing power?
It falls because prices rise faster than the savings grow
It stays unchanged because the balance earns interest
It rises because any positive interest rate beats inflation
It rises by exactly 7%
16. You receive a text claiming to be from your bank. It says your account will close unless you click a link and enter your password. What is the safest response?
Click the link but enter only part of the password
Contact the bank through its official app, website, or verified phone number
Reply to the text and ask whether it is genuine
Forward the message to a friend and follow their vote