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The Financial Literacy Quiz

Studies have found a link between higher scores on financial literacy quizzes and investment returns. Test yourself on five key financial concepts.

by AAII Staff | April 2020


Studies have found a link between higher scores on financial literacy quizzes and investment returns. The following Financial Literacy Quiz tests on five key financial concepts that researchers view as being key for determining whether a person is financially literate or lacks adequate knowledge to make the best decisions.

The first three questions involve doing a simple interest rate calculation, factoring the impact of inflation into a scenario and exhibiting an understanding of risk diversification. The last two questions analyze a person’s understanding of the tax implications of contributions to retirement savings and how employee matching affects contributions.

For a detailed explanation of each answer, see “Five Key Financial Concepts” by Hareesh N. Jayanthi in the October 2015 AAII Journal.

Discussion

Fred from NY posted over 6 years ago:

These were pretty easy.


Happy1 from Tennessee posted over 6 years ago:

Wow. The quiz was easy. If those questions represents financial literacy I should be a multi-millionaire


Steve from NC posted over 6 years ago:

Lighten up, brainiacs. This was exactly what the name implied - a quick acid test for personal financial/tax literacy. Many non-financial employees get lost in the language when reviewing 401k materials. Something like this could help administrators proffer important guidance.


Tatsuo Hirose from MA posted over 6 years ago:

The questions were not difficult to answer.


Jim from Batuski posted over 6 years ago:

I do hope most aaii members did well.


Clintmiller21@aol.com from California posted over 6 years ago:

I am a Life member and need Help logging in. Please help !


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