How smart are you financially? – Financial Cause

Take this quiz to see how financially knowledgeable you are!

Questions:

3

Test Your Financial Knowledge Quiz

Test your financial knowledge by taking part of this quiz. There is a series of 16 questions that test your knowledge of financial principles and practices

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1. If the inflation rate is 5% and the interest rate you get on your savings is 3%, will your savings have at least as much buying power in a year's time?

a) Yes

b) No

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2. A credit report is...?

a) A list of your financial assets and liabilities

b) A monthly credit card statement

c) A loan and bill payment history

d) A credit line with a financial institution

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3. Who insures your stocks in the stock market?

a) The National Deposit Insurance Corporation

b) The Securities and Exchange Commission

c) The Bank of Canada/ US

d) No one

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4. By using unit pricing at the grocery store, you can easily compare the cost of any brand and any package size. ( True or False)

a) True

b) False

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5. If each of the following persons had the same amount of take home pay, who would need the greatest amount of life insurance?

a) A young single women with two young children

b) A young single woman without children

c) An elderly retired man, with a wife who is also retired

d) A young married man without children

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6. If you had a savings account at a bank, which of the following statements would be correct concerning the interest rate that you would earn on this account?

a) Sales tax may be charged on the interest that you earn

b) You cannot earn interest until you pass your 18th birthday

c) Earnings from savings account interest will not be taxed

d) Income tax may be charged on the interest if your income is high enough

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7. Inflation can cause difficulty in many ways. Which group would have the greatest problem during periods of high inflation that lasts several years?

a) Young working couples with no children

b) Young working couples with children

c) Older working couples saving for retirement

d) Older people living on fixed retirement income

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8. Lindsay has saved $ 12,000 for her university expenses by working part-time. Her plan is to start university next year and she needs all of the money she saved. Which of the following is the safest place for her university money?

a) Corporate bonds

b) Mutual Funds

c) A bank savings account

d) Locked in a safe at home

e) Stocks

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9. Which of the following types of investment would best protect the purchasing power of a family's savings in the event of a sudden increase in inflation?

a) A twenty-five year corporate bond

b) A house financed with a fixed-rate mortgage

c) A 10-year bond issued by a corporation

d) A certificate of deposit at a bank

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10. Under which of the following circumstances would it be financially beneficial to borrow money to buy something now and repay it with future income?

a) When something goes on sale

b) When the interest on the loan is greater than the interest obtained from a savings account

c) When buying something on credit allows someone to get a much better paying job

d) It is always more beneficial to borrow money to buy something now and repay it with future income

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11. Which of the following statements is not correct about most ATM ( Automated Teller Machine) cards?

a) You can get cash anywhere in the world with no fee

b) You must have a bank account to have an ATM card

c) You can generally get cash 24 hours-a-day

d) You can generally obtain information concerning your bank balance at an ATM machine

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12. Which of the following can hurt your credit rating?

a) Making late payments on loans and debts

b) Staying in one job too long

c) Living in the same location too long

d) Using your credit card frequently for purchases

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13. What can affect the amount of interest that you would pay on a loan?

a) Your credit rating

b) How much you borrow

c) How long you take to repay the loan

d) All of the above

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14. Which of the following will help lower the cost of a house?

a) Paying off the mortgage over a long period of time

b) Agreeing to pay the current rate of interest on the mortgage for as many years as possible

c) Making a larger down payment at the time of purchase

d) Making a smaller down payment at the time of purchase

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15. If a person at age 29 years old with $10,000 to invest earning 4%, how much would they have at age 65?

a) $30,000

b) $40,000

c) $60,000

d) $80,000

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16. If a person at age 29 years old with $10,000 to invest earning 12%, how much would they have at age 65?

a) $160,000

b) $320,000

c) $640,000

d) $80,000

Your score is

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