Skip to comments.The Average American Can't Answer These Three Simple Finance Questions
Posted on 05/09/2014 8:48:55 AM PDT by SeekAndFind
Here’s a frightening fact via The Atlantic’s Moises Naim. Roughly half of the world can’t answer these three questions correctly:
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.
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.
Even worse – 70% of Americans can’t answer all three questions correctly. And we wonder why the world seems to have so many persistent financial problems. We don’t even come close to understanding the construct of money or how it should be used.
(Excerpt) Read more at businessinsider.com ...
D) oh, crap....just let the gubmint do it for me
A, C, & B.
How’d I do?
Depending on who’s asking D could be the right answer - refuses to answer.
About as well as most Freepers would do.
Love the see the answers from Obama’s economic advisers.
Why have “refuse to answer”? If somebody doesn’t want to cooperate, just haul them away.
OK...now you’re just showing off. ;-)
Count me as one of the stupid. I’d answer the third question “it all depends on which stock and which mutual fund.”
Next, how many of the remaining actually comprehend the question? Another 25%?
There is hope, most of the rest got the answer right.
It always baffled me that someone would take the time to take a survey and answer with some sort of “refuse to answer”.
Eight million have signed up I swear it.
Juanita should buy a clue so she knows whether she has 4 or 6 friends. ;-P
It’s not wrong, but isn’t the answer they are asking for, either.
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