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Table 1 The “Big Three” financial literacy questions

From: Financial literacy and the need for financial education: evidence and implications

1) Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow?
 More than $102**
 Exactly $102
 Less than $102
 Do not know
 Refuse to answer
2) Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After 1 year, how much would you be able to buy with the money in this account?
 More than today
 Exactly the same
 Less than today**
 Do not know
 Refuse to answer
3) Please tell me whether this statement is true or false. “Buying a single company’s stock usually provides a safer return than a stock mutual fund.”
 True
 False**
 Do not know
 Refuse to answer
  1. Source: Lusardi and Mitchell (2011b)
  2. **Correct answers