Wellness Center [Financial Literacy Resources]

Question 1

What is a type of retirement account?

A

B

C

D

Savings account
A

B

C

D

Individual Retirement Account
A

B

C

D

HSA account
A

B

C

D

Brokerage account

Question 2

How do you make money on a bond?

A

B

C

D

You earn dividends on the investments in the bond or when it's sold, or you can sell your share of the bond.
A

B

C

D

You earn interest on the money you loaned out, or you can sell the bond if the value has gone up.
A

B

C

D

You earn interest by agreeing to keep your money in a financial institution for a set amount of time.
A

B

C

D

You buy the bond when the company's stock is in low demand and sell when it is in high. You can also earn dividends.

Question 3

What is one of the primary reasons you should start thinking about retirement early on in your career?

A

B

C

D

Because you, like many people, will be responsible for supporting yourself during the 30 or 40 years you can expect to live after you retire.
A

B

C

D

Because all employers require you to participate in their retirement plans.
A

B

C

D

Because you are required by law to start saving for retirement at your first job.
A

B

C

D

Because you can use retirement funds to buy your first house.

Question 4

Retirement planning is an important aspect of financial literacy. What is generally NOT considered a reliable source of retirement income?

A

B

C

D

Money borrowed from friends and family
A

B

C

D

Savings from your employer-sponsored retirement plan (e.g., 401(k))
A

B

C

D

Part-time work during retirement
A

B

C

D

Social Security benefits

Question 5

If an individual starts a 401(k) plan at the age of 25, contributes $5,000 per year for 40 years until retirement at 65 with an average return of 8%, what would be the approximate total account value?

A

B

C

D

Exactly $500,000.
A

B

C

D

Roughly $750,000.
A

B

C

D

Just over $2 million.
A

B

C

D

Nearly $1.4 million.

Reward Quiz

Question 1

Question 2

Question 3

Question 4

Question 5