Financial Literacy Quiz 1 Grades 10-12

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* 1. Mijas is interested in purchasing a used car. She has $1600 for a down payment. She found a car she likes for $9100. The car dealer is offering her financing at 3.1% for 48 months. Her monthly payments will be $188.52. How will the interest be calculated?

Using the simple interest formula of Principal x rate x time

Using the daily simple interest formula of The months beginning balance x interest rate divided number of days between payment equals interest due for the month

Using an amortization schedule of dividing your interest rate by the number of payments being made in a year, then multiply that number by the remaining balance on the loan to see how much interest paid in month one, then continue through the time frame.

Interest is calculated up front and paid first

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* 2. In question 1, Mijas is taking a loan of $8500, the interest rate is 3.1% for 48 months. In the first month, Mijas would pay $21.82 in interest. Create a schedule that shows how much principal and interest will be paid each month. What is the total interest Mijas will pay?

$445.98

$545.27

$766.04

$499.99

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* 3. Mijas is planning to use her car to deliver groceries. How does this impact her decision to borrow or save until she can pay cash for her new car?

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* 4. When setting goals, it is recommended you set SMARTER goals. SMARTER is an acronym for what?

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* 5. What are the three main types of bank accounts in Canada?

Salary, Savings, Business

Savings, Checking, Business

Business, Savings, Tax

Checking, Salary, Tax

Watch this video and answer the questions that follow: https://youtu.be/HfpQj7j3PUc

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* 6. After watching the above video, how should you categorize your money within a budget?

Savings, Taxes, Investment, Living

Savings, Living, Taxes

Taxes, Investments, Savings

Savings, Investments, Living

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* 7. At this stage of your life, how much should you set aside for savings and investing?

25%

50%

75%

100%

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* 8. Allie is thinking about what she wants to do post high school. She is isn't sure if she wants to go to post secondary school, start a business or pursue her passion for craft. How will budgeting now help to ensure she is prepared when the decision making time comes?

Allie will be able to track her expenses

Allie will be able to save some of her income

Allie may not have to borrow to pursue the opportunity she decides on

All of the above

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* 9. Interest for your savings account is 1% per year. Inflation this year was at 2%. After one year, would your ability to buy something with your money in your savings account be: better or worse than today?

Better

About the same

Worse

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* 10. Simon is a newcomer to Canada He is bringing his life savings with him and he is concerned about the safety of his money in a Canadian bank. Tell him why he should not be concerned.

Watch this video and answer the questions that follow: https://finlit101.ca/en/topic/decision-making-key-steps

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* 11. After watching the above video on decision making, what do you think the goal of good decision making is?

To be intentional about your next steps

To help your parents out

To start a business

To ensure you go to college

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* 12. Once you have a decision, do you have to stick with it?

Strongly agree

Agree

Neither agree nor disagree

Disagree

Strongly disagree

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* 13. Using our decision making skills, helps us to choose between options. What is this called?

Good decision making

Opportunity cost

Power of possibility

None of the above

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* 14. Brett wants to donate $100 of his savings to a charitable cause to help children less fortunate that him. $10 will provide lunch for one student at school for a week, $50 will provide hockey equipment and registration to two kids for the season. What is the opportunity cost of Brett using all his money to provide hockey equipment and registration?

Nothing

Depends on which option is more important to Brett

Depends on which option is most important to the kids impacted

The cost of lunches for 10 students for one week