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.

BONUS QUESTION: Suppose you owe $1,000 on a loan and the interest rate you are charged is 20% per year compounded annually. If you didn’t pay anything off, at this interest rate, how many years would it take for the amount you owe to double?