Financial Literacy Practice Test /50
1. True or False? (10 marks)
The Dollar, Euro, Yen and Dinar are all currencies. T F
Sales tax is included in the retail price. T F
Fees are a source of income. T F
Electricity is an expense. T F
A sale that is 50% off will have you pay half the item’s price. T F
You can buy foreign currencies at a Currency Exchange. T F
The sales tax is the same in every province. T F
A public park, a bridge and the police are paid for by taxes. T F
Buy One Get One sales you get 2 items for the price of 1. T F
A budget is a plan to balance sales tax and commission. T F
2. Write the correct term for the 10 definitions (10 marks)
Money received for work or through investments.
A system of money that is in use in a particular country.
A percentage of a sale received by the salesperson.
A loan used to buy a home or land.
A fixed amount of money paid to an employee.
A tip given on top of the original fee.
Money that is borrowed that you pay back with interest.
The trust between a lender and the borrower.
A payment made to someone for a service.
Money that is owed or due.
Problem Solving (20 marks)
3. A $40 pair of pants is discounted 5% off. Without taxes, what’s the price?
4. A $5999.99 motorcycle is discounted by $700. What’s the pre-tax price?
5. A $500 kite is discounted 45% off. Without taxes, what’s the price?
6. Roger buys comic books in BC (sales tax 12%). He buys one for $6.99
plus tax & another for $2.99 plus tax. How much will his comics cost?
7. Rose buys a skateboard ($159.99 plus tax). How much will she pay?
8. A $299.99 helmet is discounted 15% off. What is the pre-tax price?
9. A $629.99 jacket is discounted 30% off. What is the pre-tax price?
10. A $50 bow is discounted 30% off and the $22 arrows are 20% off. What
is the pre-tax price of the set?
11. Jack has $80, a DVD costs $18.00 plus tax. How many can he buy?
12. Joanne needs to buy fertilizer. A bag costs $64.99 plus tax. Joanne has
$80. Can she afford the fertilizer? Can she also buy herself a new tulip for
$6.29 plus tax?
Using this graph, answer the questions below (2 marks)
12. Which line represents Compound Interest?
13. Which line is the smarter investment?
Solve the following conversions (8 marks)
Currency Exchange rate with Canadian
Dollar
US Dollar $1 CAD = $0.79 USD
Kuwaiti Dinar $1 CAD = KD0.24 Dinar
Japanese Yen $1 CAD = ¥85.96 Yen
Brazilian Real $1 CAD = R$4.49 Reals
Indian Rupees $1 CAD = ₹57.65 Rupees
Euros $1 CAD = €0.66 Euro
14. How much is $10 Canadian Dollars in US Dollars?
16. How much is $5 Canadian Dollars in Japanese Yen?
17. How much is $80 Canadian Dollars in Kuwaiti Dinars?
18. How much is $12 Canadian Dollars in Euros?
Financial Literacy Practice Test Answers /50
1. True or False? (10 marks)
The Dollar, Euro, Yen and Dinar are all currencies. T
Sales tax is included in the retail price. F
Fees are a source of income. F
Electricity is an expense. T
A sale that is 50% off will have you pay half the item’s price. T
You can buy foreign currencies at a Currency Exchange. T
The sales tax is the same in every province. F
A public park, a bridge and the police are paid for by taxes. T
Buy One Get One sales, you get 2 items for the price of 1. T
A budget is a plan to balance sales tax and commission. F
2. Write the correct term for the 10 definitions (10 marks)
Income Money received for work or through investments.
Currency A system of money that is in use in a particular country.
Commission A percentage of a sale received by the salesperson.
Mortgage A loan used to buy a home or land.
Salary A fixed amount of money paid to an employee.
Gratuity A tip given on top of the original fee.
Loan Money that is borrowed that you pay back with interest.
Credit The trust between a lender and the borrower.
Fee A payment made to someone for a service.
Debt Money that is owed or due.
Problem Solving (20 marks)
3. A $40 pair of pants is discounted 5% off. Without taxes, what’s the price?
If the pants are discounted 5% then we will be paying 95% of the total
price. $40.00 x 0.95 = $38.00
4. A $5999.99 motorcycle is discounted by $700. What’s the pre-tax price?
$5999.99 - $700 = $5299.99
5. A $500 kite is discounted 45% off. Without taxes, what’s the price?
If the kite is discounted 45% then we will be paying 55% of the total
price. $500.00 x 0.55 = $275.00
6. Roger buys comic books in BC (sales tax 12%). He buys one for $6.99
plus tax & another for $2.99 plus tax. How much will his comics cost?
$6.99 + $2.99 = $9.98
$9.98 x 1.12 = $11.18
7. 6. Rose buys a skateboard ($159.99 plus tax). How much will she pay?
$159.99 x 1.13 = $180.79
8. A $299.99 helmet is discounted 15% off. What is the pre-tax price?
If the helmet is discounted 15% then we will be paying 85% of the total
price. $299.99 x 0.85 = $254.99
9. A $629.99 jacket is discounted 30% off. What is the pre-tax price?
If the jacket is discounted 30% then we will be paying 70% of the total
price. $629.99 x 0.70 = $440.99
10. A $50 bow is discounted 30% off and the $22 arrows are 20% off. What
is the pre-tax price of the set?
If the bow is discounted 30% then we will be paying 70% of the total
price. $50.00 x 0.70 = $35.00
If the arrows are discounted 20% then we will be paying 80% of the
total price. $22.00 x 0.80 = $17.60
$35.00 + $17.60 = $52.60
11. Jack has $80, a DVD costs $18.00 plus tax. How many can he buy?
1 DVD: $18.00 x 1 = $18.00
$18.00 x 1.13 = $20.34
2 DVDs: $18.00 x 2 = $36.00
$24.00 x 1.13 = $40.68
3 DVDs: $18.00 x 3 = $54.00
$54.00 x 1.13 = $61.02
4 DVDs: $18.00 x 4 = $72.00
$72.00 x 1.13 = $81.36
Jack can buy 3 DVDs.
Solving:
1 DVD at retail price: $18.00 x 1 = $18.00 per unit
1 DVD at final price: $18.00 x 1.13 = $20.34 unit price with tax
$80 ÷ $20.34 = 3.93
You can’t buy a partial DVD, so Jack can buy 3 DVDs.
12. Joanne needs to buy fertilizer. A bag costs $64.99 plus tax. Joanne has
$80. Can she afford the fertilizer? Can she also buy herself a new tulip for
$6.29 plus tax?
The fertilizer will cost $64.99 x 1.13 which is $73.44
The tulip will cost $6.29 x 1.13 which is $7.11
$73.44 + $7.11 = $80.55
Joanne can get the fertilizer but she can’t also get the tulip.
Using this graph, answer the questions below (2 marks)
13. Which line represents Compound Interest?
Line A represents Compound Interest.
14. Which line is the smarter investment?
Line A, the compound interest, is the smarter investment.
Solve the following conversions (8 marks)
Currency Exchange rate with Canadian
Dollar
US Dollar $1 CAD = $0.79 USD
Kuwaiti Dinar $1 CAD = KD0.24 Dinar
Japanese Yen $1 CAD = ¥85.96 Yen
Brazilian Real $1 CAD = R$4.49 Reals
Indian Rupees $1 CAD = ₹57.65 Rupees
Euros $1 CAD = €0.66 Euro
15. How much is $10 Canadian Dollars in US Dollars?
$10 CAD x 0.79 = $7.90 USD
16. How much is $5 Canadian Dollars in Japanese Yen?
$5 CAD x 85.96 = ¥429.80 Yen = 430 Yen
17. How much is $80 Canadian Dollars in Kuwaiti Dinars?
$80 CAD x 0.24 = KD19.20 Dinar
18. How much is $12 Canadian Dollars in Euros?
$12 CAD x 0.66 = €7.92 Euros
