Your Money ;
; What’s a mutual fund?
; What does a credit report include?
; Test your financial IQ.
TheMoney
By Sid Kirchheimer
You want it. You need it. Perhaps you even love it. But
do you understand money well enough to manage your
finances for the long haul? April is Financial Literacy
Month, so it’s the right time to take our quiz to find out.
Illustrations by Mark Matcho
1. America’s financial
epicenter—Wall Street—
is named after:
A. The Wall Street Journal
B. James Haverford Wall,
who conceived the short-
lived $3 bill
C. The wall built by Dutch
colonists to defend against
invaders
2. Which statement
about a certificate
of deposit is false?
A. A CD is an interest-
bearing savings
certificate insured
by the FDIC.
B. It pays a fixed inter-
est rate for a fixed term.
C. It has no fixed
term and usually has a
variable interest rate.
D. Penalties result if
money is withdrawn
before the term ends.
3. Which of the
following is false?
A. An IRA and a 401(k)
are both retirement
savings accounts.
B. A 401(k) is offered
through your workplace,
usually with employer
contributions.
C. An IRA is funded with
your own money, some-
times with contribu-
tions by employers.
D. An IRA can be
opened with $1,000;
a 401(k) requires $401.
4. What does
APR mean?
A. Annual penalty rate,
what you owe if you
don’t pay in full
B. Annual percentage
rate, the total cost of
credit over a whole
year, including interest
rate and fees
C. Annual payoff rate,
how long it takes to
pay a debt
