Are You Financially Literate?

What does inflation do to your money over time?:

Increases its value Decreases purchasing power Has no effect Doubles your savings

Which of these is considered a “good debt”?:

Credit card debt Loan for depreciating gadgets Education loan Payday loan

Which of these best describes “passive income”?:

Income from a full-time job Income earned with minimal ongoing effort One-time bonus Freelance payment

What is the main risk of keeping all your money in a savings account?:

Loss due to fraud Inflation reducing real value Bank closure No liquidity

What does “net worth” represent?:

Monthly salary Total investments only Assets minus liabilities Cash in hand

What is the biggest downside of “Buy Now, Pay Later” (BNPL)?:

No flexibility High hidden costs and overspending risk Low approval rate Limited usage

What does a diversified portfolio protect you from?:

Taxes Inflation completely Risk of one investment performing badly Market volatility entirely

Why is having an emergency fund important?:

For investments For planned expenses To avoid debt during unexpected situations To increase credit score

What is the key feature of a “liquid” asset?:

High returns Easily convertible to cash Long-term growth Tax-free

What does “financial independence” mean?:

Earning a high salary Not relying on anyone financially Having enough assets to cover your lifestyle without active income Owning a house

Your Score

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