Could the people you know pass this five question financial test?
The U.S. May Be the World’s Richest Country, But It Ranks 14th in Financial Literacy - Real Time Economics - WSJ
Only 57% of Americans notched a passing grade, compared with over 70% in Norway, Denmark and Sweden, and over 60% in Israel, Canada, the U.K., the Netherlands, Germany, Australia, Finland and New Zealand.
- Suppose you have some money. Is it safer to put your money into one business or investment, or into multiple businesses or investments?
- Suppose over the next 10 years the prices of the things you buy double. If your income also doubles, will you be able to buy: Less than today, same as today, more than today.
- Suppose you need to borrow $100. Which is the lower amount to pay back: $105 or $100 plus 3%?
- Suppose you put money in the bank for two years and the bank agrees to add 15% per year to your account. Will the bank add more money the second year than the first year, or add the same amount of money both years?
- Suppose you had $100 in a savings account and the bank adds 10% per year. How much money would you have after five years if you did not remove any? More than $150, Exactly $150, or Less than $150
The U.S. May Be the World’s Richest Country, But It Ranks 14th in Financial Literacy - Real Time Economics - WSJ