1-Minute Quiz Tests Your Financial IQYou may know how to sniff out great bargains, clip coupons and stash aside money for that proverbial rainy day, but being a good household money manager does not make you a financial wizard.
But if you want to send your children to college and retire someday, you need at least a basic level of financial literacy to succeed.
If you're like most people, you think you know quite a bit, thank you very much. More than 60 percent of U.S. adults claim their financial know-how is either "good or excellent," but only 29 percent believe the average American knows that much.
Stop bragging and take this one-minute quiz that will test your financial literacy. The quiz was developed by Mark Hamrick for Bankrate.com:
1. What is the basic benchmark used by money managers and other financial professionals for monitoring the stock market?
2. What happens to bond yields when bond prices go higher?
3. If you have money to invest, is it generally better to focus on one asset or should you spread your money around in a variety of investments?
4. When asking to borrow money from a traditional lender, such as when you apply for a mortgage, your credit score is checked to determine the likelihood that you'll pay the money back. What would be considered a good credit, or FICO, score?
5. Which part of the federal government actually prints the paper money we carry in our wallets and purses?
1. The basic benchmark used to monitor the stock market is the Standard & Poor's 500 Index.
2. Because bond yields and prices move in opposite directions, yields dip lower if prices trend higher.
3. Diversify, diversify, diversify.
4. A good FICO score is in the range of 610 to 739. Scores higher than this are considered very good or exceptional.
5. Our paper money is printed by the Bureau of Printing and Engraving, while our coins are produced by the U.S. Mint. Both are part of the U.S. Department of the Treasury.