Financial literacy final test study guide
questions & correct answers
Is it safer to put your money into one investment or put your money into multiple investments?
A. One Investment
B. Multiple Investments - correct answer ✔✔ B
If you invest $100 in a Roth IRA and earn 10% per year for 3 years, how much would it be worth
at the end of three years?
A. More than $130
B. Exactly $130
C. Less than $130 - correct answer ✔✔ A
If you use a credit card in January for a total of $300, which payment option will result in the
lowest amount of overall interest paid?
A. The Full Amount ($300)
B. The Minimum Payment Required
C. Pay Nothing ($0) - correct answer ✔✔ A
Suppose you decide to buy a BMW for $50,000. If you take out an auto loan for 5 years with 5%
interest, how much total will you pay per year?
A. More than $10,000
B. Exactly $10,000
C. Less than $10,000 - correct answer ✔✔ A
, In the future, the cost of things you buy doubles AND your income also doubles. How much will
you be able to buy in the future in comparison to today?
A. Less
B. The Same
C. More - correct answer ✔✔ B
Suppose you have $30,000 in student debt. Which payment option will result in the lowest
amount of overall interest paid?
A. 10 years at $350 per month
B. 15 years at $270 per month
C. 20 years at $230 per month - correct answer ✔✔ A
A friend from college is thinking about applying to the same company where you work. She asks
you for information about the business's compensation package. She is asking about...
A. The starting salary you were offered compared to what you earn now
B. How much you will pay in taxes for the year
C. Your health and dental insurance premiums
D. The total salary, insurance, retirement, and other benefits the company offers - correct
answer ✔✔ D
Robert graduates from high school next year and is trying to figure out which career field he'd
like to enter in the future. He wants to make sure the option he chooses has future earnings
potential. Which factor would be most beneficial for him to consider?
A. How many people work in this field internationally
B. How many colleges in his hometown offer that major
C. How the starting salary compares to the median salary in this field
D. How much the CEOs of the top three companies in this industry earn - correct answer ✔✔ C
questions & correct answers
Is it safer to put your money into one investment or put your money into multiple investments?
A. One Investment
B. Multiple Investments - correct answer ✔✔ B
If you invest $100 in a Roth IRA and earn 10% per year for 3 years, how much would it be worth
at the end of three years?
A. More than $130
B. Exactly $130
C. Less than $130 - correct answer ✔✔ A
If you use a credit card in January for a total of $300, which payment option will result in the
lowest amount of overall interest paid?
A. The Full Amount ($300)
B. The Minimum Payment Required
C. Pay Nothing ($0) - correct answer ✔✔ A
Suppose you decide to buy a BMW for $50,000. If you take out an auto loan for 5 years with 5%
interest, how much total will you pay per year?
A. More than $10,000
B. Exactly $10,000
C. Less than $10,000 - correct answer ✔✔ A
, In the future, the cost of things you buy doubles AND your income also doubles. How much will
you be able to buy in the future in comparison to today?
A. Less
B. The Same
C. More - correct answer ✔✔ B
Suppose you have $30,000 in student debt. Which payment option will result in the lowest
amount of overall interest paid?
A. 10 years at $350 per month
B. 15 years at $270 per month
C. 20 years at $230 per month - correct answer ✔✔ A
A friend from college is thinking about applying to the same company where you work. She asks
you for information about the business's compensation package. She is asking about...
A. The starting salary you were offered compared to what you earn now
B. How much you will pay in taxes for the year
C. Your health and dental insurance premiums
D. The total salary, insurance, retirement, and other benefits the company offers - correct
answer ✔✔ D
Robert graduates from high school next year and is trying to figure out which career field he'd
like to enter in the future. He wants to make sure the option he chooses has future earnings
potential. Which factor would be most beneficial for him to consider?
A. How many people work in this field internationally
B. How many colleges in his hometown offer that major
C. How the starting salary compares to the median salary in this field
D. How much the CEOs of the top three companies in this industry earn - correct answer ✔✔ C
