Personal Financial Literacy Test Form B
How much would Vincent have in his account after three years if he started with $100 and earns 5 percent, compounding annually?
$115.76
Anthony wants to be better at saving his money. Name at least five tips you could suggest to help him save.
1. Making responsible purchases 2. Keeping your money in a safe spot 3. Knowing how much money you need to save 4. Have a savings account
Claim
A request for payment from an insurance company
A stock broker _____.
Buys and sells stock
Jordan wants to know how long it will take for the money she deposited to double. She has an interest rate of 4 percent. Calculate how long it will take her money to double.
Eighteen years
Select all the reasons an individual would save his or her money in a CD.
High intrest rates, Safe, No fees
Select all the types of retirement accounts.
IRA, 401(k), 403(b)
Using money to try to make more money is called _____.
Investing
Diverseification
Investing in a variety of investments in order to limit losses in the event of a sharp decline in a particular type of investment
An online savings account _____.
Offers higher interest rates because they don't have the overhead that standard banks have
The amount with which an individual starts an investment is called the _____.
Principal
Liquidity
The ease with which an investment can be turned into cash without losing its value
Return
The profit or gain from saving or investing money
529 Plan
a savings plan for education designed to help set aside funds to pay for future college costs
The annual percentage yield (APY) is the _____.
amount of interest you'll earn in one year from a savings account