/

The Personal Finance Quiz That 86% Of Americans Failed

Turns out that people are just about as likely to overestimate their financial savviness as they are their good looks.

A new survey by the FINRA Investor Education Foundation found that 75% of U.S. adults say they’re pros at managing their finances, but only 14% could ace a five-question quiz on basic financial concepts.

This was no small study sample size either. A whopping 25,000 consumers took the quiz.

Think you can do a better job? Take the FINRA quiz below, then click http://www.usfinancialcapability.org/quiz.php to see explanations for the answers.

Take the FINRA Financial Literacy Quiz

Question 1

Suppose you have $100 in a savings account earning 2 percent interest a year. After five years, how much would you have?

More than $102

Exactly $102

Less than $102

Question 2

Imagine that the interest rate on your savings account is 1 percent a year and inflation is 2 percent a year. After one year, would the money in the account buy more than it does today, exactly the same or less than today?

More

Less

Same

Question 3

If interest rates rise, what will typically happen to bond prices? Rise, fall, stay the same, or is there no relationship?

Rise

Fall

Stay the same

There’s no relationship to bond price and interest rates.

Question 4

True or false: A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less.

True

False

Question 5

True or false: Buying a single company’s stock usually provides a safer return than a stock mutual fund.

True

False

Go to http://www.usfinancialcapability.org/quiz.php to do the quiz online and get an explanation of the answers

If you were one of the 86% who struggled with this financial literacy test, contact us today.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>