The Commission for Financial Capability (CFFC) has just released the results of its financial knowledge survey for 2020, and it finds that only 22% of New Zealanders were able to get 100% on its questions.
Here are the questions – see if you can get them all right:
- Imagine that five brothers are given a gift of $1,000. If the brothers have to share the money equally how much does each one get? Now imagine that the brothers have to wait for one year to get their share of the $1,000 and inflation stays at 3 percent. In one year’s time, will they be able to buy:
- More with their share of the money than they could today
- The same amount
- Less than they could buy today
- I’m not sure
- You lend $25 to a friend one evening and he gives you $25 back the next day. How much interest has he paid on this loan?
- Suppose you put $100 into a no fee savings account with a guaranteed interest rate of 2% 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?
- And how much would be in the account at the end of five years, remembering there are no fees? Would it be:
- More than $110
- Exactly $110
- Less than $110
- Impossible to tell from the information provided
- True or false: An investment with a higher than average return is likely to have higher than average risk.
- True or false: High inflation means that the cost of living is increasing rapidly.
- True or false: It is less likely that you will lose all of your money if you save it in more than one place.
Scroll down to find the answers.