Take this quiz, created by professors Annamaria Lusardi and Olivia S. Mitchell (2017 Quarterly Journal of Finance paper, "How Ordinary Consumers Make Complex Economic Decisions: Financial Literacy and Retirement Readiness"). You will get your score when you complete the quiz. Your results will help you assess your level of understanding of SOPHISTICATED financial literacy concepts, discussed in Julie Jason's February 2020 column.

Questions 1-8: "sophisticated" financial literacy questions
Questions 9-12: "summary self-assessment" questions
Questions 13-17: demographic questions

Quoting from the paper: "Competent planning for retirement and investing of retirement assets requires an understanding of several additional [sophisticated] financial concepts, including the risk/return relationship, risk diversification, and how stocks and bonds work."

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* 1. Which of the following statements describes the main function of the stock market?

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* 2. Which of the following statements is correct?

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* 3. If the interest rate falls, what should happen to bond prices?

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* 4. Buying a company stock usually provides a safer return than a stock mutual fund.

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* 5. Stocks are normally riskier than bonds.

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* 6. Considering a long time period (for example 10 or 20 years), which asset normally gives the highest return?

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* 7. Normally, which asset displays the highest fluctuations over time?

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* 8. When an investor spreads his money among different assets, does the risk of losing money:

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* 9. On a scale from 1 to 7, where 1 means very low and 7 means very high, how would you assess your understanding of economics?

1 7
i We adjusted the number you entered based on the slider’s scale.

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* 10. How much of your school's education (high school, college or higher degrees) was devoted to economics? 

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* 11. [Have any of your previous employers offered] financial education programs, for example retirement seminars?

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* 12. How much have you thought about retirement?

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* 13. What is your gender?

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* 14. What is your age?

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* 15. What is the highest level of education you have completed?

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

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* 17. Please provide your contact information.

0 of 17 answered
 

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