Financial Literacy

Which of the following is an advantage of term life insurance?

• It is less expensive
• It lasts for one’s entire life
• It covers an individual and their entire family
• It builds up money that can be accessed later

Whole life insurance can be beneficial for all of the following reasons except

• It builds up money that can be accessed later
• It lasts for one’s entire life
• The premium stays the same

Which type of policy would be best for a single mother of two that is on a limited budget?

• Whole Life
• Term

If someone has a very low amount of money, wants to start saving and wants their money to be liquid, which type of account would be most fitting?

• Money Market
• 401K
• Savings Account
• CD

In which of the following accounts are contributions made BEFORE taxes?

• IRA
• Roth IRA
• Money Market
• Savings Account

Of the following accounts, which would typically produce the highest rate of return (the highest interest rate)?

• 401K
• CD
• Savings Account
• Money Market

Which of the following are considered retirement accounts?

• IRA
• Roth IRA
• 401K
• All of the above
• None of the above

A 401K is

• Mainly a Retirement Account
• Mainly a Savings Account

A CD (Certificate of Deposit) is

• Mainly a Retirement Account
• Mainly a Savings Account

A Roth IRA is

• Mainly a Retirement Account
• Mainly a Savings Account