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Old 03-28-2015, 05:47 AM   #81
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95% (19/20). Missed #16, but in looking at it again I misread the correct answer.
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Old 03-28-2015, 06:11 AM   #82
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100%. Some demographics definitely "stuck". Number of male and employed respondents has gone up since earlier posts; number of females and Unemployed is unchanged.


I agree that it's biased towards classical economics and real life isn't that simple.
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Old 03-28-2015, 06:16 AM   #83
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I "aced" it but still know that Q#1 is wrong. When all the fast food places are desperately trying to hire (high growth) from a limited pool of workers, the quality of worker diminishes and so does the food........
That question (#1), is the one I got wrong so I got a 95%. I just based my answer on what I've experienced (i.e. real life) where I've been living for quite a while. More fast food restaurants than ever, and the general quality just seems to be fading.

Maybe it is just that my expectations on fast food has increased
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Old 03-29-2015, 07:41 PM   #84
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20 out of 20. One or two could have gone either way so a bit of luck.
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Old 03-30-2015, 04:23 PM   #85
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19 of 20 but then failed to look at which one I flubbed. So I guess I don't know what I don't know...


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Old 04-01-2015, 03:13 PM   #86
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IMO, this is a poorly worded question:

"An increase from 5% to 8% in the interest rates charged by banks would most likely encourage:"

Is that an interest rate for savings or for a mortgage?
- If mortgage, then people would buy a house sooner rather than later
- If savings, people would save more.

I assumed mortgage, and so I got it wrong. In my parlance you "charge" interest for a mortgage, and not a savings account (you are "paid" or "receive" on a savings account).
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Old 04-01-2015, 03:14 PM   #87
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Yeah that was poorly worded. Several of the questions were.
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Old 04-01-2015, 03:36 PM   #88
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Originally Posted by dadu007 View Post
IMO, this is a poorly worded question:

"An increase from 5% to 8% in the interest rates charged by banks would most likely encourage:"

Is that an interest rate for savings or for a mortgage?
- If mortgage, then people would buy a house sooner rather than later
- If savings, people would save more.

I assumed mortgage, and so I got it wrong. In my parlance you "charge" interest for a mortgage, and not a savings account (you are "paid" or "receive" on a savings account).
I think it's fine as is. For reference:

Quote:
3.
An increase from 5% to 8% in the interest rates charged by banks would most likely encourage:

A. Businesses to invest.
B. People to purchase housing.
C. People to save money.
D. Don't Know.
The interest rates a bank charges are related to what they offer as well. Mortgages are near historic lows, and so are savings account and CD rates. When mortgages were in double digit rates in the 80s, so were CDs.

Higher interest rates makes money more expensive for a business, and therefore will discourage them from investing.

Higher interest rates makes mortgages more expensive, and therefore will discourage housing purchases.

Getting better interest rates can encourage people to save, it's the most correct of the three, and generally correct.

When you said, '- If mortgage, then people would buy a house sooner rather than later' - you are reading far, far too much into the question. You are assuming that rates are 5% now, and there was some big announcement that rates will be going up to 8% at some specific date in the future, and you have time to still get 5%. That might encourage people to buy now, but mortgage rates don't work that way. Rates change, they are not announced six months ahead of time.

I have a bigger issue with the general wording ' An increase from 5% to 8% '. You have to judge from context whether those are absolute percentage points, or a percentage change. It could mean that a current rate of 10% is increasing to a range of 10.5% to 10.8%. Too ambiguous for me.


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Old 04-01-2015, 04:03 PM   #89
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Same result here. And not having a "retired" option for employment is discriminatory. See, I'm already invisible!

Re question 1, I got it right, but only by remembering what is supposed to happen according to economic theory, not what actually does. Which is that the food is still crap.
+1

Got 20/20. Interesting how several semesters of economics in college and grad school more than 30 years ago came back crystal clear to answer these questions - I could even picture the graphs! I always thought I forgot everything the day after the final exam!
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Old 04-01-2015, 04:20 PM   #90
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+1

I always thought I forgot everything the day after the final exam!
There was a final exam?
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Old 04-02-2015, 07:12 PM   #91
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There was a final exam?
Yes. The results determine whether you can RE or have to work until you're dead.
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Old 04-03-2015, 03:18 PM   #92
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95% - Missed 9 (Guess I gave too little credit to "producers".) YMMV
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Old 04-03-2015, 05:55 PM   #93
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I took the test. That's it for financial literacy?

Darn! I should be filthy rich, since I know so much.

Oh wait! I forgot that the market can be so irrational at times. I guess I still do not know enough to be a good trader like Soros.
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Old 04-04-2015, 07:31 AM   #94
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100. Straight out of my old macro and micro textbooks
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Old 04-04-2015, 10:55 AM   #95
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I took the test. That's it for financial literacy?
These questions are more related to economics than finance/investing.
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Old 04-05-2015, 01:54 PM   #96
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These questions are more related to economics than finance/investing.
Yep, that's what the author's clearly stated. OP was just a tad off mark when he said "financial literacy."

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Test your own economic literacy with these 20 questions
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Old 04-05-2015, 01:56 PM   #97
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20 of 20. That was a nice surprise!
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