Financial Literacy Quiz

Use the Rule of 72 to calculate how long it will take for your money to double if it's earning 6% interest:

• A) 36 years

• B) 72 years

• C) 12 years

• D) 16 years

Which will most benefit you financially?

• A) A savings account that compound interest daily

• B) A savings account that does not compound interest

• C) A savings account that compound interest monthly

• D) A savings account that compound interest yearly

Which type of bank account typically offers no interest?

• Certificate of Deposit

• Money Market

• Checking

• Savings

Which of the following typically have the highest fees?

• Payday Lender

• Retail Bank

• Credit Union

• Online Bank

Which of the following typically has the lowest fees or costs to use?

• Credit card

• Payday loan

• Debit card

• Cash advance

The term referring to the rate of yearly interest for your credit card is commonly known as:

• APR

• Grace period

• Default rate

• COD

The best financial advice on credit cards is

• never use credit cards

• get a lot of credit cards while you're young

• pay off only the minimum payment required each month

• charge only as much as you can pay off in full at the end of the month

The "Rule of 72" shows

• how long it will take to become a millionaire

• what kind of investment (stocks, bonds, commodities) is the best over time

• why it takes approximately 72 years to double your money in the stock market

• the length of time it will take money to double at different interest rates

If an investment you make earns 2% interest, how long will it take to double your money?

• 18 years

• 36 years

• 72 years

• it's impossible to tell

Compounding is defined as which of the following?

• Interest on top of interest

• Interest on top of the principal

• Interest on top of the principal and the interest that has been added

• Interest on top of the Interest and the Principal that has been added.