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Quiz Tests Financial Literacy

Money 2000 and Beyond There has been much written in the past few years about Americans' low level of financial literacy. Issues of particular concern are financial vulnerability factors such as high household debt and an extremely low savings rate. Below are 13 quiz questions, followed by the correct answers, to test your financial literacy. Take the quiz and see how much you know about a variety of financial topics. Each question should be answered with a true or false.
        
  1. Matthew and Alicia just had a baby. They received money as baby gifts and want to put it away for the baby's education. A U.S. government savings bond is likely to provide the highest growth over the next 18 years.
    2.     
  2. If you are willing to receive a lower Social Security retirement check, Social Security allows you to retire as early as age 62.
    3.     
  3. Employers who provide pension plans are also required to provide health insurance to their retirees.
    4.     
  4. If you begin receiving Social Security benefits at 62, you are eligible for Medicare benefits at the same time.
    5.     
  5. Under current law, Medicare pays nursing home expenses for people with Alzheimer's disease.
    6.     
  6. Your credit report includes employment data, your payment history, any inquiries made by creditors, and any public record information.
    7.     
  7. All investment products bought at your bank are covered by FDIC insurance.
    8.     
  8. If you are behind on debt payments and go to a credit counseling service, they can get the federal government to apply your income tax refund to pay off your debts.
    9.     
  9. Whole life insurance has a savings feature while term life insurance does not.
    10.     
  10. After signing a contract to buy a new car, you have three days to change your mind.
    11.     
  11. When you purchase shares of a mutual fund, your money is invested in a variety of stocks and bonds.
    12.     
  12. If you expect to carry a balance on your credit card, the annual percentage rate (APR) is the most important factor to look at when comparing credit card offers.
    13.     
  13. Investment products bought at a bank are covered by FDIC insurance.

ANSWERS:
        
  1. F
    2.     
  2. T
    3.     
  3. F
    4.     
  4. F
    5.     
  5. F
    6.     
  6. T
    7.     
  7. F
    8.     
  8. F
    9.     
  9. T
    10.     
  10. F
    11.     
  11. T
    12.     
  12. T
    13.     
  13. F