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Financial Literacy Practice Tests

These Grade 10 Additional Subjects practice tests examine budgeting, income, needs and wants, saving, emergency funds, simple and compound interest, credit, loans, investing, diversification, insurance, taxes, consumer protection, identity theft, and financial resilience.

Skills covered

  • Building budgets and distinguishing gross income, net income, fixed expenses, variable expenses, needs, wants, and opportunity cost
  • Understanding simple interest, compound interest, APR, principal, credit scores, debt-to-income ratio, and loan terms
  • Comparing stocks, bonds, diversification, risk, return, liquidity, insurance, deductibles, and investment time horizons
  • Explaining taxes, paycheck deductions, sales tax, identity theft, scams, contracts, warranties, and financial records
  • Setting measurable goals, using sinking and emergency funds, avoiding predatory lending, and building financial resilience

How to use these practice tests

Identify the goal and time horizon first. Then compare the total cost, risk, liquidity, obligations, and opportunity cost before choosing the most responsible financial action.

For more Grade 10 Additional Subjects practice, return to the Grade 10 Additional Subjects category.

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5 Tests
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1. Test

Grade 10 Financial Literacy Practice Tests

Practice Grade 10 Additional Subjects questions about budgeting, income, saving, interest, credit, loans, investing, insurance, taxes, consumer protection, and financial security.

Choose the best answer. Compare costs and benefits, identify financial risks and obligations, and connect each decision to goals, time horizon, and opportunity cost.

10 Questions
0/10 Questions0 %
Correct 0
Incorrect 0
Unanswered 10
1. QuestionMultiple choice

What is a budget?

Please select an answer first.

Correct answer: A

The correct answer is A plan for expected income and spending over a period.

  1. Identify the financial decision: Determine whether the question asks about a budget, saving, borrowing, investing, insurance, taxes, consumer protection, or financial risk.
  2. Connect the evidence: A budget compares expected income with planned spending and helps a person or household set priorities.
  3. Check the conclusion: The correct answer is A plan for expected income and spending over a period.

A budget compares expected income with planned spending and helps a person or household set priorities.

2. QuestionMultiple choice

What is net income?

Please select an answer first.

Correct answer: B

The correct answer is Income left after taxes and other deductions are taken out.

  1. Identify the financial decision: Determine whether the question asks about a budget, saving, borrowing, investing, insurance, taxes, consumer protection, or financial risk.
  2. Connect the evidence: Net income, or take-home pay, is the amount available after required and selected deductions.
  3. Check the conclusion: The correct answer is Income left after taxes and other deductions are taken out.

Net income, or take-home pay, is the amount available after required and selected deductions.

3. QuestionMultiple choice

Which is a fixed expense?

Please select an answer first.

Correct answer: C

The correct answer is A monthly rent payment that stays the same for the lease period.

  1. Identify the financial decision: Determine whether the question asks about a budget, saving, borrowing, investing, insurance, taxes, consumer protection, or financial risk.
  2. Connect the evidence: Fixed expenses are relatively stable from period to period, while variable expenses change.
  3. Check the conclusion: The correct answer is A monthly rent payment that stays the same for the lease period.

Fixed expenses are relatively stable from period to period, while variable expenses change.

4. QuestionMultiple choice

What is a variable expense?

Please select an answer first.

Correct answer: D

The correct answer is An expense whose amount changes over time.

  1. Identify the financial decision: Determine whether the question asks about a budget, saving, borrowing, investing, insurance, taxes, consumer protection, or financial risk.
  2. Connect the evidence: Food, entertainment, and some utility costs can vary depending on use or choices.
  3. Check the conclusion: The correct answer is An expense whose amount changes over time.

Food, entertainment, and some utility costs can vary depending on use or choices.

5. QuestionMultiple choice

What is the difference between a need and a want?

Please select an answer first.

Correct answer: A

The correct answer is A need is necessary for basic well-being, while a want is desired but not essential..

  1. Identify the financial decision: Determine whether the question asks about a budget, saving, borrowing, investing, insurance, taxes, consumer protection, or financial risk.
  2. Connect the evidence: Distinguishing needs from wants helps people prioritize limited income.
  3. Check the conclusion: The correct answer is A need is necessary for basic well-being, while a want is desired but not essential..

Distinguishing needs from wants helps people prioritize limited income.

6. QuestionMultiple choice

What is an emergency fund?

Please select an answer first.

Correct answer: B

The correct answer is Savings set aside for unexpected necessary expenses.

  1. Identify the financial decision: Determine whether the question asks about a budget, saving, borrowing, investing, insurance, taxes, consumer protection, or financial risk.
  2. Connect the evidence: An emergency fund can help cover events such as repairs, medical costs, or temporary loss of income.
  3. Check the conclusion: The correct answer is Savings set aside for unexpected necessary expenses.

An emergency fund can help cover events such as repairs, medical costs, or temporary loss of income.

7. QuestionMultiple choice

Why is paying yourself first a useful saving strategy?

Please select an answer first.

Correct answer: C

The correct answer is It directs part of income to savings before discretionary spending..

  1. Identify the financial decision: Determine whether the question asks about a budget, saving, borrowing, investing, insurance, taxes, consumer protection, or financial risk.
  2. Connect the evidence: Automatic or planned saving before optional spending can make a financial goal more consistent.
  3. Check the conclusion: The correct answer is It directs part of income to savings before discretionary spending..

Automatic or planned saving before optional spending can make a financial goal more consistent.

8. QuestionMultiple choice

What is an opportunity cost in a personal budget?

Please select an answer first.

Correct answer: D

The correct answer is The next-best use of money given up when it is spent elsewhere.

  1. Identify the financial decision: Determine whether the question asks about a budget, saving, borrowing, investing, insurance, taxes, consumer protection, or financial risk.
  2. Connect the evidence: Choosing one purchase or goal means giving up another possible use of the same funds.
  3. Check the conclusion: The correct answer is The next-best use of money given up when it is spent elsewhere.

Choosing one purchase or goal means giving up another possible use of the same funds.

9. QuestionMultiple choice

Why track spending?

Please select an answer first.

Correct answer: A

The correct answer is To compare actual behavior with goals and identify places to adjust..

  1. Identify the financial decision: Determine whether the question asks about a budget, saving, borrowing, investing, insurance, taxes, consumer protection, or financial risk.
  2. Connect the evidence: Tracking reveals patterns, fees, unnecessary spending, and progress toward savings or debt goals.
  3. Check the conclusion: The correct answer is To compare actual behavior with goals and identify places to adjust..

Tracking reveals patterns, fees, unnecessary spending, and progress toward savings or debt goals.

10. QuestionMultiple choice

What is a good first step when a budget has a deficit?

Please select an answer first.

Correct answer: B

The correct answer is Compare income and expenses, then reduce or adjust flexible spending and priorities..

  1. Identify the financial decision: Determine whether the question asks about a budget, saving, borrowing, investing, insurance, taxes, consumer protection, or financial risk.
  2. Connect the evidence: A clear comparison helps identify whether to reduce spending, increase income, or revise the plan responsibly.
  3. Check the conclusion: The correct answer is Compare income and expenses, then reduce or adjust flexible spending and priorities..

A clear comparison helps identify whether to reduce spending, increase income, or revise the plan responsibly.

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