Take the Financial Literacy Quiz, how do you do?

[Svnla]

No cheating or Google.

Quiz = http://www.usfinancialcapability.org/quiz.php

3 out of 4 young folks (millennials) failed. D: http://www.mainstreet.com/article/s...cial-questions-can-you?puc=yahoo&cm_ven=YAHOO

<<----5 out of 5.

 

[Riverhound777]

5 out of 5. Should be longer to really get a gauge. But some pretty good questions, not surprised many people don't have this basic knowledge.

 

[Insomniator]

I got 4 out 5. 4 of the questions are completely obvious, but I had no clue on the one about bonds vs interest rates. I don't even know what bonds are exactly.

 

[CPA]

If anyone misses any of those questions they should be kicked in the nards.

 

[CPA]

I got 4 out 5. 4 of the questions are completely obvious, but I had no clue on the one about bonds vs interest rates. I don't even know what bonds are exactly.

Prepare yourself, kick in the nards coming.

 

[jagec]

Technically "don't know" should count as a correct answer.

Unless you DO know, but you're lying.

 

[Away]

5 out of 5.

 

[BoomerD]

You got 5 correct answers out of 5.

Most of those seemed like things a 5th grader should have been able to correctly answer.

 

[highland145]

You got 5 correct answers out of 5.

Most of those seemed like things a 5th grader should have been able to correctly answer.

This. If I remember, I'll see what my 7th grader can do.

 

[Mai72]

The bankers don't want Americans to know much about finances.

 

[twinrider1]

Missed the bonds question. My thought was new bonds would be higher as they'd be paying higher interest rates. If they'd have said existing bonds, I'd have answered correctly.

 

[dighn]

these are extremely simple questions that anyone doing any kind of investing or property buying should know. 5/5

 

[Eug]

I got 4 out 5. 4 of the questions are completely obvious, but I had no clue on the one about bonds vs interest rates. I don't even know what bonds are exactly.

I think out of those questions, a fail should be anything less than 4 out of 5, and the only one that I think is reasonable to get wrong is the one you got wrong. Get any of the others wrong and it should be an automatic fail IMO. (I got 5/5 though.)

Given that I think 3 or less is a fail, it's pretty sad to find out that the national average is 2.88.

P.S. Up here in Canada we don't usually have 15 or 30 year mortgage terms, but the concept is the same. One of the most popular is 5 years, but amortized over longer periods like 25 years, which means you may need to renew 4 more times (with new rates) before your house is paid off.

Ironically, I read somewhere that the age of the average US mortgage is only 4 years.

 

[deadlyapp]

Haven't investigated much how bonds react to the market so I answered that one wrong.

 

[Eug]

BTW, it's interesting to check out the scores by state.

Massachussetts is 3.01, but Mississippi is 2.53. I wonder what the total number tested is, because that difference seems huge. That said, I specifically chose to look at Mississippi because I guessed it would score low. No offence Mississippians...

 

[tHa ShIzNiT]

thought I would do worse but I knew em all. I'm not too great with money, so I try to stay out of big things that require financing like houses and cars...actually I try to stay away from all types of financing. Also put my money into low risk investments like mutual funds because I don't know the stock market well. Its working so far...meh.

Interesting thing is there's not much more important to me than money...but I still don't know much about it. Things that make you go hmmmmm

 

[Jaepheth]

5 out of 5

Not really a "literacy" test though; more of a basic concepts test.

I would have expected more definition questions like bear vs bull market; basically questions to determine how well you can understand WSJ articles.

 

[gorcorps]

I got the one about Bonds wrong because Sean Connery wasn't one of the answers, so I guessed

 

[jagec]

P.S. Up here in Canada we don't usually have 15 or 30 year mortgage terms, but the concept is the same. One of the most popular is 5 years, but amortized over longer periods like 25 years, which means you may need to renew 4 more times (with new rates) before your house is paid off.

Ironically, I read somewhere that the age of the average US mortgage is only 4 years.

Wait, you guys get 5-year mortgages with balloon payments, or 5/5 ARMs?

As for the age of US mortgages, that is somewhat skewed by the fact that rates have been dropping for years, which means that many of us have refinanced over and over. Assuming that rates won't drop much more from now on, that average age should start to rise again.

 

[Jodell88]

5 out of 5 and I'm a Millennial.

 

[Anubis]

5/5

 

[ChAoTiCpInOy]

I got 4 out 5. 4 of the questions are completely obvious, but I had no clue on the one about bonds vs interest rates.

Same here

 

[GasX]

Missed the bonds question. My thought was new bonds would be higher as they'd be paying higher interest rates. If they'd have said existing bonds, I'd have answered correctly.

If your bond pays 5% and new bonds pay 10%, your bond drops in value so that the purchaser will earn 10%. (gross oversimplification...)

 

[Naeeldar]

5 out of 5. I'm struggling how any adult could possibly get less than a 4 out of 5. I could understand some people not knowing how the bond market works. But the rest of those are complete jokes.

 

[blackdogdeek]

5/5