Course Quiz - Financial Fitness Center

1.

Series EE bonds, series HH bonds, and series I bonds all offer _______.

A minimum purchase price of less than $100

Regular interest payments

Regular dividends

A relatively safe investment

A relatively safe investment. Savings bonds are backed by the US government and can provide a relatively safe instrument that helps provide stability to your investment portfolio.

2.

You can purchase a savings bond at ________.

Your city or town hall

TreasuryDirect

Your bank or credit union

Your state capitol

TreasuryDirect. You can buy a savings bond online at this location.

3.

The US government established savings bonds to _______.

Raise money to help the American Red Cross recruit more hospital volunteers during World War II.

Pay for the building of ships needed during World War I

Pay for expenses related to World War II

Pay for the completion of the interstate highway system

Pay for expenses related to World War II. The US government began issuing savings bonds in 1941, using movies, posters, and other media to publicize the effort.

4.

To qualify for the tax exclusion offered through the Education Bond Program, you must _______.

Be at least 24 years old at the time you purchase the bond

Use the bond to pay for room, board, and other qualified expenses

Be at least 18 years old at the time you purchase the bond

Use the bond to pay for room, board, books, and other qualified expenses

Be at least 24 years old at the time you purchase the bond. To qualify for this program, an adult age 24 or older must buy the bonds.

5.

A friend mentions that his savings bonds are based on the rate of Treasury securities. Your friend owns _______.

Series E bonds

Series EE bonds

Series HH bonds

Series I bonds

Series EE bonds. Series EE bonds pay 90 percent of the six-month average yield on five-year Treasury securities.

6.

Jan owns $3,300 worth of series EE bonds that will mature soon. She can _______.

Exchange them for four $1,000 series HH bonds and one $500 HH bond at face value

Exchange them for three $1,000 series HH bonds at face value and $300 cash

Exchange them for three $1,000 series HH bonds at face value with an additional payment of $300

Redeem her bonds, but she can no longer exchange them for Series HH bonds

Redeem her bonds, but she can no longer exchange them for Series HH bonds. Series HH bonds have not been available for sale or exchange since 2004.

Test your knowledge

Choose wisely. There is only one correct answer to each question.