Take this quiz, created by professors Annamaria Lusardi and Olivia S. Mitchell (2011 National Bureau of Economic Research paper, "Financial literacy around the world: an overview"). You will get your score when you complete the quiz. Your results will help you assess your level of financial literacy concepts, discussed in Julie Jason's February 2020 column on the "Big Three."

Questions 1-3: the "Big Three" financial literacy questions
Questions 4-6: demographic questions

Quoting from the paper: "Our questions were designed to be included in an experimental financial literacy module for the 2004 Health and Retirement Study. In doing so, we relied on economic models of saving and portfolio choice to identify three economic concepts that individuals should have some understanding of, if they are to use them when making financial decisions: i) interest compounding; ii) inflation; and iii) risk diversification. To keep these concepts simple in the context of telephone or face-to-face interviews, we did not require respondents to engage in complicated calculations; rather, we simply evaluated whether people could carry out elementary calculations related to these concepts. To this end, we designed three questions which have now become the benchmark by which a wide variety of analysts measure financial literacy."

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* 1. Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow?

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* 2. Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After 1 year, how much would you be able to buy with the money in this account?

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* 3. Buying a single company’s stock usually provides a safer return than a stock mutual fund.

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* 4. What is your gender?

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* 5. Would you like to receive Julie Jason's monthly newsletter?

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* 6. Please provide your contact information.

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