How Financially Literate Are You?
How Financially Literate Are You?
Take this quiz to learn how much financial prowess you have. Share with your colleagues to see who gets the ultimate bragging rights.
Take this quiz to learn how much financial prowess you have. Share with your colleagues to see who gets the ultimate bragging rights.
Accumulated Interest: Part I. You have $100 in a savings account which earns 2% annual interest. After one year of accumulating interest, how much money is in the savings account?
Accumulated Interest: Part II. You have $100 in a savings account which earns 2% annual interest. After ten years of accumulating interest, how much money is in the savings account?
Inflation: Part I. Your savings account, which earns 2% annually, grows gradually. However, inflation currently runs at 3%. After one year at the 3% inflation rate, is the money in your savings account able to buy more, less or the same as the day you deposited the money?
Inflation: Part II. In a year when inflation rises at 2% and your paycheck rises by 3%, are you able to purchase more, less or the same amount of goods and services at the end of the year?
Mortgages: Part I. You want to pay as little interest as possible on a home mortgage, regardless of the monthly payment. Do 30-year mortgages or 15-year mortgages have lower interest rates?
Mortgages: Part II. How much down payment do you need to purchase a home without having to pay for mortgage insurance?
Interest Rates: Part I. When the interest rate on a bond rises, what happens to the price of the bond?
You have $1,000 and want to use this cash to buy a bond. The annual interest rate on the bond is currently 3%. However, you hear on the news that interest rates are going to rise soon. Should you wait to buy the bond, or buy it before interest rates rise?