Tuesday, October 28, 2008

Personal Finanance 101 Quiz

From The Oregonian.

Test your personal finance knowledge

Here's a sampling of questions from a 2008 questionnaire for high school students prepared by the Jump$tart Coalition for Personal Financial Literacy. Nationwide, 6,856 seniors took the survey, with an average score of 48.3 percent.

1. Your take-home pay from your job is less than the total amount you earn. Which of the following best describes what is taken out of your total pay?
a) Social Security and Medicare contributions
b) Federal income tax, property tax, and Medicare and Social Security contributions
c) Federal income tax, Social Security and Medicare contributions
d) Federal income tax, sales tax, and Social Security contribution

2. Retirement income paid by a company is called:

a) 401(k)
b) Pension
c) Rents and profits
d) Social Security

3. Rob and Mary are the same age. At age 25, Mary began saving $2,000 a year, while Rob saved nothing. At age 50, Rob realized that he needed money for retirement and started saving $4,000 per year while Mary kept saving her $2,000. Now they are both 75 years old. Who has the most money in his or her retirement account?
a) They would each have the same amount because they put away exactly the same
b) Rob, because he saved more each year
c) Mary, because she has put away more money
d) Mary, because her money has grown for a longer time at compound interest

4. If your credit card is stolen and the thief runs up a total debt of $1,000 but you notify the issuer of the card as soon as you discover it is missing, what is the maximum amount that you can be forced to pay according to federal law?
a) $500
b) $1,000
c) Nothing
d) $50

5. Which of the following is true about sales taxes?
a) The national sales tax percentage rate is 6 percent.
b) The federal government will deduct it from your paycheck.
c) You don't have to pay the tax if your income is very low.
d) It makes things more expensive for you to buy.

6. 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

7. If you went to college and earned a four-year degree, how much more money could you expect to earn than if you only had a high school diploma?
a) About 10 times as much
b) No more; I would make about the same either way
c) A little more; about 20 percent more
d) A lot more; about 70 percent more

(Answers on previous post).

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