Financial Literacy Quiz

Analyze the following statement to determine if it is true or false: With all investments, as the risk goes up, the return goes down.

• True

• False

Analyze the following statement to determine if it is true or false: The Roth IRA is an after-tax investment that grows tax free.

• True

• False

Analyze the following statement to determine if it is true or false: Never buy something you do not fully understand.

• True

• False

Analyze the following statement to determine if it is true or false: Shelf positioning forces the buyer to associate a value with the product.

• True

• False

Analyze the following statement to determine if it is true or false: Never roll over your 401(k) when you leave a company.

• True

• False

Analyze the following statement to determine if it is true or false: If we used a race analogy to describe building wealth, it would be most like a sprint.

• True

• False

Analyze the following statement to determine if it is true or false: Rate of return matters when it comes to compound interest.

• True

• False

Analyze the following statement to determine if it is true or false: Diversification means to spread around.

• True

• False

Analyze the following statement to determine if it is true or false: Once you have a fully-funded emergency fund, put 10% of your income into retirement plans.

• True

• False

Analyze the following statement to determine if it is true or false: Your first Baby Step is to pay off all of your debt.

• True

• False