- More than $102
- Less than $102
- Exactly $102
2. Imagine that the internet rate on your savings account is one percent a year and inflation is two percent a year. After one year, would the money in the account buy:
- More than it does today
- Exactly the same as it does today
- Less than it does today
3. If interest rates rise, what will typically happen to good prices?
- Rise
- Fall
- Stay the same
- There is no relationship
4. True or False. A 15 – year mortgage typically requires higher monthly payments than a 30 – year old mortgage, but the total interest over the life of the loan will be less:
- True
- False
5. True or False. Buying a single company’s stock usually provides a safer return than a stock mutual fund:
- True
- False
Extra Credit: How to Improve Your Score!
Make Financial Goals: Establish short and long term goals, using a worksheet if necessary, to start planning goals within important areas of your life including education, housing, healthcare and recreation.
Follow A Budget: Even a simple budget that tallies what you earn versus what you spend can help improve your financial well – being.
Build Credit Wisely: Don’t be afraid of credit, but don’t abuse it either. A strong credit profile can only be built through responsible use of credit cards. Many cards come with rewards programs that allow you to earn points, miles or cash back.
Plan for the Future – Saving and Investing: Are you saving money each month? Do you have enough to live on if you were to lose your job? Are you investing your money to help it grow? You don’t have to leap head – first into the stock market, but saving and investing can begin small efforts. Open a savings account and set up auto – deposit so that the same amount of money is going into the account each month, without you having to move it over. Speak with a trusted financial adviser to talk about your options for investment.