READY TO COMPETE? Watching the Olympics sparks the competitive spirit in many people. If you‚Äôre looking for a way to compete, try taking this financial literacy quiz. If you like, you can create your own event by having family and friends test their knowledge, too.
1. Which of the following does Experian say is the most important to your credit score?
a. Payment history
b. Amount owed
c. Credit history length
d. New credit applications
2. Which has the most risk, according to Investopedia?
a. Owning a diversified portfolio of small, large and mid-sized company stocks
b. Owning the stock of a large company
c. Owning a portfolio of technology company stocks
d. Owning a portfolio of small company stocks
3. If you put $100 in an account that earned 5 percent interest each year, how much would the account be worth after 10 years?
a. About $105
b. About $150
c. About $160
d. About $180
4. When shopping for chicken noodle soup, which of the following is the best value?
a. The store‚Äôs brand
b. The can with the highest discount
c. The can with the lowest price per ounce
d. The can with the lowest price in the size you need
You‚Äôll find the answers below. When you have any financial or money questions, please get in touch.
Weekly Focus ‚Äď Think About It
‚ÄúAn investment in knowledge pays the best interest.‚ÄĚ
‚ÄĒBenjamin Franklin, American statesman
(1) A; (2) B; (3) C; (4) C
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. However, the value of fund shares is not guaranteed and will fluctuate. *Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features. * The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index. * The Standard & Poor's 500 (S&P 500) is an unmanaged index. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. * The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index. * The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market. * Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce. * The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998. * The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones. * Yahoo! Finance is the source for any reference to the performance of an index between two specific periods. * Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. * Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful. * Past performance does not guarantee future results. Investing involves risk, including loss of principal. * You cannot invest directly in an index. * Consult your financial professional before making any investment decision.