Take the Financial Literacy Quiz

Suppose you have $100 in a savings account earning 2 percent interest a year. After five years, how much would you have?

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?

If interest rates rise, what will typically happen to bond prices? Rise, fall, stay the same, or is there no relationship?

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.

True or false: Buying a single company's stock usually provides a safer return than a stock mutual fund.