Quiz: Are You a Smart Consumer?

April 14, 2008

High schoolers are gathered in Minneapolis for the 2008 National LifeSmarts Championship, a test of consumer-related knowledge. The contest, sponsored by the National Consumers League, encourages teens to learn how to be smart consumers. (You can see who is winning at the contest's official blog.) Test how well you measure up on these sample questions, courtesy of the NCL:

People who invest in CDs may choose them because they want investment vehicles that:
1. Provide safety and income
2. Offer high returns with little risk
3. Provide liquidity and moderate returns
Which of the following investments is the most volatile?
1. Certificate of deposits
2. Stocks
3. Treasury bonds
Bonds described as "junk bonds" are also more positively called:
1. Treasury bonds
2. Blue chip bonds
3. High-yield bonds
“Lemon Laws" generally apply to what type of car?
1. New cars
2. Used cars
3. Both new and used cars
What is true about checking accounts?
1. You cannot earn interest on the money in a checking account
2. Banks can offer any interest rate they want to
3. Federal law governs the interest rate on checking accounts