Test Your Financial Knowledge To See How You Compare

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An international study compared adult financial literacy across 14 countries shows just how basic most people’s knowledge about handling money really is.

The results showed 78% of New Zealanders who took part in the quiz answered six of the eight questions correctly – a pass mark of 75%.

Next was Hungary (69%), followed by Estonia (61%) and Ireland (60%).

The study was run by the Organisation of Economic Co-Operation and Development (OECD)

Take the test

If you think you can rate higher, try the test for yourself. Score a point for each correct answer, but only take a point for the question four if you answer question five correctly as well.

1. If five brothers have to share $1000 equally, how much do they get?

a) $100 b) $150 c) $200 d) $250

2. If they have to wait a year for their share and annual inflation is 3%, can they buy:

a) More than they could today b) The same c) Less

3. You lend a friend $25 tonight and he repays $25 tomorrow. How much interest has he paid?

a) None b) $1 c) $2 d) $3

4. How much would you have at the end of a year if you put $100 in to a no-fee savings account paying 2% interest a year?

a) $98 b) $100 c) $102 d) $120

5. How much would be in the account after five years?

a) More than $110 b) The same c) Less than $110 d) Can’t tell from the details provided

6. An investment with higher than average returns is likely to have higher than average risk?

a) True b) False

7. High inflation means the cost of living is increasing quickly

a) True b) False

8. You are less likely to lose all your money if you save in more than one place

a) True b) False

The answers

The OECD concluded the results from the survey showed a lack of financial knowledge in each of the countries that took part.

“We have a lot of room for improvement in understanding and promoting financial behaviour,” said a spokesman. “Attitudes to money are widely different between countries. Hopefully, the results will let governments highlight what needs to be done to improve financial education.”

Answers: 1. C 2. A 3. A 4. C 5. A 6. A 7. A 8. A

 

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