Money Quiz: Do You Know How To Manage Your Money?

Do you know how to manage your money? Take a Money Quiz to find out. Let’s see how well you do with the following questions.

http://thehistoryhacker.com/2013/01/22/political-debate-fruit-fight/?replytocom=311 1.  Suppose you had $100 in a savings account and the interest rate was 2 percent per year. After five 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) do not know; refuse to answer.

http://beccajcampbell.com/tag/may/ 2.  Imagine that the interest rate on your savings account is 1 percent per year and inflation is 2 percent per year. After one year, would you be able to buy A) more than, B) exactly the same as, or C) less than today with the money in this account?; D) do not know; refuse to answer.

3.  Do you think that 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) do not know; refuse to answer.

The correct answers are 1-A; 2-C; and 3-B.

The above questions are from an article in The Atlantic. You can review it in its entirety by clicking here.

The results of the survey show that 70% of Americans cannot answer the above questions correctly. Did you? If so, you are in the top 30% of the smartest Americans. Congratulations. Does that worry you as much as it does me?

The research also found that women, the poor, and the elderly are the groups with the lowest levels of financial literacy.