Figure you're financially literate? Try these:
1. If you are in the 25 percent marginal tax bracket and you make a $300 tax-deductible contribution to a charity, you would reduce the amount of tax you owe by:
a. $100 b. $125 c. $25 d. $75
2. Based on the choices below, which of the following credit card offers is the best for someone who plans to borrow $1,000 and make payments for one year?
a. 0 percent introductory APR and 12.5 percent APR after 12 months
b. 0 percent introductory APR and 18 percent APR after 3 months
c. 8 percent APR for balance transfers
d. 8.9 percent fixed APR
3. Which of the following investments offers the lowest risk and generally the lowest return?
a. Common stock
b. Gold
c. Mutual fund
d. U.S. treasury security
4. Sandy places $3,000 of her savings into a CD that earns 5 percent interest a year. After one year, how much is Sandy's investment worth?
a. $3,015
b. $3,050
c. $3,150
d. $3,300
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Answers: 1. d; 2. a; 3. d; 4. c.
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