3 Questions that Measure Financial Literacy

Test your financial literacy knowledge with these three questions.

 

1) “Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow?”
A) More than $102
B) Exactly $102
C) Less than $102
D) Don’t know
E) Refuse to answer

 

2) “Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After 1 year, with the money in this account, would you be able to buy…”
A) More than today
B) Exactly the same as today
C) Less than today
D) Don’t know
E) Refuse to answer

 

3) “Do you think the following statement is true or false?
Buying a single company stock usually provides a safer return than a stock mutual fund.”

A) True
B) False
C) Don’t know
D) Refuse to answer

 

CLICK HERE FOR THE ANSWERS.