1) Karol has $100 in a savings account earning 2% interest a year. After five years, how much would she have if she left the money to grow? a) More than $102 b) Exactly $102 c) Less than $102 2) Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After 1 year, how much would you be able to buy with the money in this account? a) More than today b) Exactly the same as today c) Less than today 3) Which of the following would be expected to hold its value best during a time of inflation? a) A certificate of deposit b) A corporate bond c) A house 4) True or false? "A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less." a) TRUE b) FALSE 5) Pat and Chris have identical interest-bearing bank accounts that pay them $15 interest per year. Pat leaves the $15 in the account each year, while Chris takes the $15 home to a jar and never spends any of it. After five years, who has more money? a) Pat b) Chris c) They both have the same amount

Financial Literacy 🧠 Quiz - LEVEL 1

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