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Take the Financial Literacy Quiz, how do you do?

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4 out of 5 right here, with one "I don't know"

And I would openly admit to knowing VERY little about stock markets, mutual funds, short term this, long term that.

Most of them to me were common sense math questions.
 
You got 5 correct answers out of 5.
These were not hard. The Bond Question I had to think for maybe a couple seconds, but the rest were very obvious.

2 percent interest for 1 year, anything more than 1 year, is more than 2% due to compounding.

1 percent interest is less than 2 percent inflation.

a stock is investing in one company, a mutual fund is spreading the risk ... that's the entire reason for mutual funds to exist, is to reduce risk while still investing in a market.



I would say that anybody who gets 1-4 points most likely has reading comprehension problems/illiteracy.
 
IMO the interest question should be:

2% per year interest on $100.
After 5 years do you have $110, more than $110, less than $110?

The $102 they used actually made me hesitate a sec because it made me think I read the question wrong.
 
4/5 for me. I chose don't know on the bond question although I was leaning toward the correct answer, just wasn't sure. Pretty basic questions IMO.
 
I worry about anyone who scored less than a 4 on this.

And, yeah, I got a 5. Amazing, considering how badly I do with money decisions at times.
 
Blackjack200 said:
Become my business partner?

All you need is rich parents' checkbook and a large bottle of lube.
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Sorry, hate Philadelphia, went to school there. Won't go back.

I think US Virgin Islands has good tax incentives, so HMU if you want to start business there.
 
Missed the bond one. I obviously don't know much about finance in general, but that was the only one I couldn't really reason out from what I did know. I chose "stay the same" because of some vague memory of hearing that bonds are a safe bet when the rest of the market is in flux.
 
SlitheryDee said:
Missed the bond one. I obviously don't know much about finance in general, but that was the only one I couldn't really reason out from what I did know. I chose "stay the same" because of some vague memory of hearing that bonds are a safe bet when the rest of the market is in flux.
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You buy the bond discounted to the par value at the maturity date. So a bond worth $1,000 at maturity that you bought for 950 is a 5.26%... ((1000-950) / 950 = 5.26%) Bond rates are based off interest rate + a risk %.

If interest rates rise, that bond at $950 dollars isn't attractive, because at 950 that's a 5.26% rate. If interest rates go up to 10% the price of the bond needs to drop to $909 in order to clear the market.

par value - price / price = interest rate.

((1000-909) / 909 = 10%)
 
4/5. No idea about the bonds questions, but the others were straight forward. Not sure how people would struggle with this test.
 
6/5

Clearly there are a bunch of middle class people on ATOT who couldn't access the test available for rich people.

Eug said:
The $102 they used actually made me hesitate a sec because it made me think I read the question wrong.
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Same here. I re-read the question a couple of times to make sure I had it correct.
 
4/5. Missed the bond question. The rest were really easy.

CPA said:
Prepare yourself, kick in the nards coming.
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No one knows everything, and I missed that question too. If you'd like, I can prep a "basic" EE quiz for you to take and we'll see how you do. 🙂
 
The 2% question. I'm sitting here doing a Taylor polynomial in my head because I don't feel like opening the calculator app. Then, I saw the answers. All I could think was, "this must be a trick question. I'm going to click on more and see, "ha ha! There's a $1.50 monthly fee since your balance is less than $500." (Like most everyone else, 5/5)
 
I got 4 out of 5. Just got the bond question wrong, because it's not a financial tool really used here.

<--- millennial
 
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