Savings and Investments - High School Quiz

Question 1: The annual interest you would earn on a saving account from a bank:
is typically less than 8%
may vary from month to month and it might be a negative number
is typically more than 8%
generate income that is never taxed

Question 2: Mutual funds pool deposits from investors to purchase securities. Which of the following is true about mutual funds?
Investors do not have to pay taxes on gains from mutual funds
You can invest in mutual funds only when you pass your 18th birthday
Mutual funds are typically less safe than Certificates of Deposit
Mutual funds cannot be bought in retirement accounts

Question 3: Martin wants to set up a retirement account with after-tax contributions. Which of the following accounts should he set up?
IRA
Roth IRA
401k
Coverdale

Question 4: John and Anne have college education accounts for all of their four children. Which of the following accounts should have the most conservative holdings?
account for Mike, who is 15
account for Jenna, who is 12
accounts for Matt and Eric, who are 8 years old twins
all accounts should be equally conservative

Question 5: Which of the following families would be affected the most by a 10 years period of high inflation?
A couple in their 30's with two children
A couple in their 50's saving for retirement
A couple in their 20's who both work
A couple in their 60's living on fixed retirement income

Press the Submit button to see the results.

 




Financial Literacy External Resources

The Jumpstart Coallition for Personal Finance Literacy
Personal Finance 101 from Student Aid on the Web