The Smart Money

 

It's that time of year again! National Financial Literacy Month, commemorated each April, is designed to raise awareness about the importance of personal finance education. This quiz tests your own level of financial literacy.

Sources: Question 1; Question 2; Question 3; Question 4; Question 5; Question 6; Question 7; Question 8; Question 9

1. What percent of the U.S. population reports they either could not come up with $400 in an emergency or would have to cover that expense by selling something or borrowing money?
44 percent
50 percent
66 percent
2. True or false: The Internal Revenue Service has warned taxpayers of a new scam involving false tax refunds being deposited into their bank accounts.
True
False
3. True or false: In an effort to carefully manage and monitor your credit, you should order your credit report annually from freecreditreport.com.
True
False
4. Which of the following options when borrowing money to buy a car allows you to pay the least amount of interest?
You borrow $5,000 for a car at 8 percent interest for three years.
You borrow $5,000 for a car at 5 percent interest for three years.
You put down $5,000 for a car and borrow $4,500 at 5 percent interest for 30 months.
5. Given a principal investment of $5,000 in a certificate of deposit with a fixed interest rate of 2 percent compounded annually, how long would it take for your money to double in value?
50 years
36 years
15 years
6. A common rule of thumb for establishing an emergency fund is to save
from three to six months of income.
from nine to 12 months of income.
from 15 to 18 months of income.
7. When renting a home or apartment, renters insurance covers all of the following EXCEPT:
damage to your possessions.
damage to the home or apartment.
theft of your possessions.
8. In an effort to reduce your exposure to risk when investing, which of the following is your best option?
Buying shares of a mutual fund
Buying crypto currencies
Buying shares of stock in one company
9. True or false: If you are a victim of identity theft, you should file a report with the Consumer Financial Protection Bureau.
True
False
Your score is: