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 |