Financial Literacy Quiz 2

What is a common feature of a Certificate of Deposit (CD)?

• High liquidity

• Fixed interest rate

• Unlimited withdrawals

• Variable interest rate

Which of the following is most likely to lead to increased consumer spending?

• Reduced government spending

• Rising interest rates

• High unemployment

• Lower taxes

Which financial product generally offers the highest interest rates for long-term savings?

• Money market account

• Certificate of Deposit (CD)

• Savings account

• Checking account

What is a potential drawback of online shopping?

• Increased risk of fraud and data breaches

• Limited product selection

• Longer shipping times compared to traditional shopping

• Higher prices compared to physical stores

What is a key advantage of having an emergency fund?

• It allows for increased spending on luxury items

• It provides financial security in unexpected situations

• It helps pay for expected expenses

• It enables higher returns on investment