Money Smarts

Welcome to your Money Smarts quiz!

This is a financial literacy test that was designed about 10 years ago by a couple of Business School professors. It was designed to measure the ability of populations to be "effective economic decision makers". GOOD LUCK!!

1
Suppose you have $100 in a savings account, and the interest rate was 2% per year. After five years, how much do you think you would have in the account if you left the money to grow?
2
Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After one year, how much would you be able to buy with the money in this account?
3
Is this statement TRUE or FALSE?

Buying a single company's stock usually provides a safer return than a stock mutual fund.