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LET’S PRACTICE
Name: _____________________________________________________________________________
Are You Financially Literate? Chapter 1 Quiz 1. Everything you will learn in The 21st Century Student’s Guide to Financial Literacy – Getting Personal falls into which of the following financial literacy themes? a. Jobs–Economy–Retirement b. Wealth–Income–Savings and Investing c. Earning Income–Building Wealth–Protecting Wealth d. Earning Wealth–Preserving Income–Investing Time 2. Reflect on the following statement: “Income is earned, but wealth is built.” Briefly state the difference between income and wealth. _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ 3. T F The strongest determinant of income and class is education. 4. T F Households with higher income tend to have lower levels of education. 5. List two reasons why it is necessary to build wealth in order to be financially secure, even if you have a high income. _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ 6. Which of the following is NOT true about income distribution in the U.S.: a. The lifestyle quality associated with different income levels is different in various areas of the country b. The Super Rich own 3% of all wealth in the country c. Over 45 million people in the United States live beneath the Federal Poverty Line d. Income of $100,000–$200,000 qualifies for “Upper Middle Class Status” 7. Tell whether each of the following would qualify as wealth or as income. Explain your answer. a. Josh earns $20 per hour working at a car dealership. ____________________________________________________________________ PRODUCT PREVIEW
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THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY
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