Are You Financially Literate?

Ramit at I Will Teach You To Be Rich just published an interesting post with a quiz that can tell if you have a basic grasp on financial literacy.

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

a. More than $102
b. Exactly $102
c. Less than $102
d. Do not know

2. Imagine that the interest rate on your savings account was 1 percent per year and inflation was 2 percent per year. After 1 year, would you be able to buy more than, exactly the same as, or less than today with the money in this account?

a. More than today
b. Exactly the same as today
c. Less than today
d. Do not know

3. Do you think that the following statement is true or false? “Buying a single company stock usually provides a safer return than a stock mutual fund.”

a. True
b. False
c. Do not know

You have to visit Ramit for the answers and the rest of the post.  Let me know how you did in the comments.  I suspect most people who take the time to read a finance blog know the answers, but you never know.  If I have failed you, let me know what I need to write about.