Scores have been falling on tests that measure high schoolers' financial literacy. Would you ace this one?
1. Which of the following is true about sales taxes?
A. The national sales-tax percentage rate is 6%
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
42% of high school seniors answered this question correctly
2. If you have caused an accident, which type of automobile insurance would cover damage to your own car?
37% of high school seniors answered this question correctly
3. Which of the following types of investment would best protect the purchasing power of a family's savings in the event of a sudden increase in inflation?
A. A 10-year bond issued by a corporation
B. A certificate of deposit at a bank
C. A 25-year corporate bond
D. A house financed with a fixed-rate mortgage
36% of high school seniors answered this question correctly
4. Sara and Joshua just had a baby. They received money as baby gifts and want to put it away for the baby's education. Which of the following tends to have the highest growth over periods of time as long as 18 years?
A. A checking account
C. A U.S. government savings bond
D. A savings account
17% of high school seniors answered this question correctly
See the answers on the next page.