Test Your Financial Literacy Survey

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1. Q1. Which of the below repayment strategies will help you pay your loan off fastest?

Paying $1500 per month

Splitting the repayment into two and paying $750 per fortnight

Multiplying monthly repayment by 12, then dividing by 26 and paying $692 per fortnight

I don’t know

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2. Credit cards sometimes offer 55 days interest free, this means you don’t pay interest on any purchases until 55 days after you buy the item. Is this:

True

False

I don’t know

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3. Your credit card has an outstanding debt of $3,000 with an interest rate of 18%p.a. The minimum monthly repayments are set at 2% of the closing balance. If you only made the minimum repayment, how long until you pay it off?

Pay off in 1 year

Pay it off in 5 years

Pay it off in 25 years

I don’t know

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4. When working out how much you should insure your house for, you should base it on:

The amount you paid for the property

The amount it would cost to rebuild your home

The amount you would get if you sold your home

I don’t know

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5. What is a common feature of a savings account?

Savings accounts are a way to save money and earn interest

You can access your savings account with a card linked to your account

Savings accounts are normally the account that you use when shopping

Savings account are best for when you have lots of money

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6. What does it mean to refinance your home?

Obtaining a new loan to repay an existing one.

Adding a bulk payment of funds to your home loan.

Receiving a discount on your current loan.

Switching to a fixed interest rate.

Transferring your home loan to your parents.

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7. How do you define equity?

When you and your partner own your home together.

When you open a joint account with someone.

The value of your home minus the amount you still owe on your loan.

The amount you still owe the bank on your loan.

When $US and $AUD are both equal.

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8. What is compound interest?

When your interest rate is decreased.

When you switch banks and encounter a different interest rate.

When you earn interest on the interest already earned on your account balance.

The bank’s average interest rate for the financial year.

When your interest in finance combines with other hobbies.

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9. What is an advantage of an offset account?

It can help you pay off your home loan faster by reducing the interest you pay.

It increases the interest on your savings by offsetting your daily interest calculated.

It provides a better home loan rate by offsetting the interest.

You can manage with fewer bank accounts.

It prevents your fixed-rate home loan from increasing by offsetting the interest.

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10. Redraw and offset are the same thing

True

False

I don’t know

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11. What does a ‘balloon payment’ refer to?

A final amount due on a loan that is structured as a series of monthly payments followed by a larger amount at the end of the loan period.

A large upfront deposit with lower regular repayments

I am unsure

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12. If you deposited $100 into a savings account with an annual interest rate of 2% and then leave the money in that account for 5 years, how much would you have saved?

More than $102

Exactly $102

Less than $102

Don’t know

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13. Suppose your savings account interest rate is 1% per year and inflation is 2% per year. After 1 year, with the money in this account, would you be able to buy…

More than today

Exactly the same as today

Less than today

Don’t know

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14. Buying shares in a single company usually provides a safer return than buying shares in multiple ASX listed companies.

True

False

Don’t know

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15. What is a loan comparison rate?

The average interest rate from all loans available

The interest rate including certain fees and charges relating to the loan

The interest rate minus discounts available on the loan

The default rate you will get if you don't ask the lender for a discount

I am not sure

The Financial Literacy Quiz is provided for personal educational purposes only. The results are a guide only and can be used as a starting point as you continue your financial education journey. We do not collect your personal information, but we may use results anonymously for research purposes.

Test Your Financial Literacy

Question Title

* 1. Q1. Which of the below repayment strategies will help you pay your loan off fastest?

Question Title

* 2. Credit cards sometimes offer 55 days interest free, this means you don’t pay interest on any purchases until 55 days after you buy the item. Is this:

Question Title

* 3. Your credit card has an outstanding debt of $3,000 with an interest rate of 18%p.a. The minimum monthly repayments are set at 2% of the closing balance. If you only made the minimum repayment, how long until you pay it off?

Question Title

* 4. When working out how much you should insure your house for, you should base it on:

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* 5. What is a common feature of a savings account?

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* 6. What does it mean to refinance your home?

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* 7. How do you define equity?

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* 8. What is compound interest?

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* 9. What is an advantage of an offset account?

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* 10. Redraw and offset are the same thing

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* 11. What does a ‘balloon payment’ refer to?

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* 12. If you deposited $100 into a savings account with an annual interest rate of 2% and then leave the money in that account for 5 years, how much would you have saved?

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* 13. Suppose your savings account interest rate is 1% per year and inflation is 2% per year. After 1 year, with the money in this account, would you be able to buy…

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* 14. Buying shares in a single company usually provides a safer return than buying shares in multiple ASX listed companies.

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* 15. What is a loan comparison rate?

1. Q1. Which of the below repayment strategies will help you pay your loan off fastest?

2. Credit cards sometimes offer 55 days interest free, this means you don’t pay interest on any purchases until 55 days after you buy the item. Is this:

3. Your credit card has an outstanding debt of $3,000 with an interest rate of 18%p.a. The minimum monthly repayments are set at 2% of the closing balance. If you only made the minimum repayment, how long until you pay it off?

4. When working out how much you should insure your house for, you should base it on:

5. What is a common feature of a savings account?

6. What does it mean to refinance your home?

7. How do you define equity?

8. What is compound interest?

9. What is an advantage of an offset account?

10. Redraw and offset are the same thing

11. What does a ‘balloon payment’ refer to?

12. If you deposited $100 into a savings account with an annual interest rate of 2% and then leave the money in that account for 5 years, how much would you have saved?

13. Suppose your savings account interest rate is 1% per year and inflation is 2% per year. After 1 year, with the money in this account, would you be able to buy…

14. Buying shares in a single company usually provides a safer return than buying shares in multiple ASX listed companies.

15. What is a loan comparison rate?