The results of a new global financial literacy survey are in and they’re not pretty. It turns out that most Westerners are pretty clueless about money matters. Researchers used three basic questions to gauge financial literacy, and in the U.S. a measly 44% of those with college degrees got all three correct. The results were even worse for those with less education—and women generally fared worse then men. How would you compare? Canada wasn’t included in the survey, but you can take the test below to find out how you stack up.
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
2. Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After 1 year, how much would you be able to buy with the money in this account?
a) More than today
b) Exactly the same
c) Less than today
3. Please tell me whether this statement is true or false. “Buying a single company’s stock usually provides a safer return than a stock mutual fund.”
(q)Ɛ (ɔ)ᄅ (ɐ)Ɩ :sɹǝʍsu∀
Source: Pension Research Council, Philadelphia, PA