Gauge your financial knowledge—take the quiz below and compare your score with the averages in specific states, regions or the nation overall.
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1. Suppose you have $100 in a savings account earning 2 percent interest a year. After five years, would you have more than $102, exactly $102 or less than $102?
Correct Answer: More than $102
2. Imagine that the interest rate on your savings account is 1 percent a year and inflation is 2 percent a year. After one year, would the money in the account buy more than it does today, exactly the same or less than today?
Correct Answer: Less than today
3. If interest rates rise, what will typically happen to bond prices? Rise, fall, stay the same, or is there no relationship?
Correct Answer: Fall
4. True or false: A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less.
Correct Answer: True
5. True or false: Buying a single company's stock usually provides a safer return than a stock mutual fund.
Correct Answer: False