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). b.) Pension. 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. b.) Stocks. c.) A U.S. government savings bond. d.) A savings account. 4. If you have caused an accident, which type of automobile insurance would cover damage to your own car? a.) Comprehensive. b.) Liability. c.) Term. d.) Collision. 5. Many savings programs are protected by the federal government against loss. Which of the following is not? a.) A U.S. Savings Bond. b.) A certificate of deposit at the bank. c.) A bond issued by one of the 50 states. d.) A U.S. Treasury bond. 6. If you had a savings account at a bank, which of the following would be correct concerning the interest that you would earn on this account? a.) Earnings from savings account interest may not be taxed. b.) Income tax may be charged on the interest if your income is high enough. c.) Sales tax may be charged on the interest that you earn. d.) You cannot earn interest until you pass your 18th birthday. Answers: 1-d; 2-b; 3-b; 4-d; 5-c; 6-b.