A sample of some of the 31 questions from the Jump$tart Coalition for Financial Literacy test taken by more than 6,000 high school seniors. The students on average answered fewer than half of the questions correctly. Answers are below.
1. 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 10-year bond issued by a corporation.
b.) A certificate of deposit at a bank.
c.) A twenty-five year corporate bond.
d.) A house financed with a fixed-rate mortgage.
2. Retirement income paid by a company is called:
a.) 401 (k).
c.) Rents and profits.
d.) Social Security.
3. Sara and Joshua just had a baby. They received money as baby gifts and want to put it away for the baby's education. Which of the following tends to have the highest growth over periods of time as long as 18 years?
a.) A checking account.