Becoming Fluent in Financial Literacy

1. True or false: The Federal Trade Commission warns consumers that there is never a legitimate reason for someone to send you to a Bitcoin ATM.

True
False

2. What is the method of computing interest where the interest rate is applied to the principal and any earned interest, often referred to as "interest on interest"?

Amortizing
Compounding
Prorating

3. To carefully manage and monitor your credit at no cost, you should order your credit report annually from which source?

freecreditreport.com
annualcreditreport.com
checkmycreditreport.com

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 the following EXCEPT:

damage to your possessions.
damage to the home or apartment.
theft of your possessions.

8. To reduce your exposure to risk when investing, which of the following is your best option?

Buying shares of a mutual fund
Buying cryptocurrencies
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

10. True or false: According to the 2023 Payments Fraud and Control Survey from the Association for Financial Professionals, checks are no longer the payment method most vulnerable to fraud.

True
False

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Becoming Fluent in Financial Literacy