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?

• More than $102
• Exactly $102
• Less than $102
• Don't Know

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?

• More
• Same
• Less
• Don't Know

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

• Rise
• Fall
• Stay the Same
• No Relationship
• Don't Know

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
• False
• Don't Know

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

• True
• False
• Don't Know

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?

• Less than 2 years
• 2 to 4 years
• 5 to 9 years
• 10 or more years
• Don't Know