How financially literate are you?
Take this quiz to find out how you compare to other Australians.
Suppose you put $100 into a no-fee savings account with a guaranteed interest rate of 2 per cent per year. You don’t make any further payments into this account and you don’t withdraw any money. How much would be in the account at the end of the first year, once the interest payment is made?
$102
$120
$200
Imagine now that the interest rate on your savings account was 1 per cent per year and inflation was 2% per year. After one year, would you be able to buy more than today, exactly the same as today, or less than today with the money in this account?
More than today
Exactly the same as today
Less than today
Is the following statement is true or false: Buying shares in a single company usually provides a safer return than buying shares in a number of different companies.
True
False
Is this statement true or false: An investment with a high return is likely to be high risk.
True
False
Suppose by the year 2020 your income has doubled, but the prices of all of the things you buy have also doubled. In 2020, will you be able to buy more than today, exactly the same as today, or less than today with your income?
More than today
Exactly the same
Less than today
You got {number correct}/{number of questions} correct answers
If you got less than five right, you’re in the majority: HILDA researchers found more than 50 per cent of Australians couldn’t answer what the researchers called “basic” questions about financial literacy concepts – numeracy, portfolio diversification, trade off between risk and return, money illusion and understanding inflation.