A Financial Literacy Quiz

It’s short, and it’s from AEIDeas.

Personal Finance Quiz. There three basic questions are often used to test basic financial literacy.

  • 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: more than $102, exactly $102, or less than $102?
  • Imagine that the interest rate on your savings account was 1% per year and inflation was 2% 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?
  • 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.”

Only 27% of young adults could answer all three questions correctly.

Answers at the second link.

Those Clinton Foundation Donations

On the matter of the Clinton Foundation’s need to refile some past tax reporting records because others had discovered that the Foundation had underreported its income, the Foundation’s Acting CEO Maura Pally offered this:

We made mistakes, as many organizations of our size do, but we are acting quickly to remedy them. And [we] have taken steps to ensure they don’t happen in the future.

Fair enough. Based solely on this instance of underreporting, it’s difficult to lay the error off to corruption or incompetence, even though the erroneous underreporting is a massive error, and the underreported donations occurred while Hillary Clinton was sitting in the Secretary of State’s chair.

But then Pally added this:

the group has already announced that it will accept funding from only a “handful of governments….”

Thus, in addition to giving the appearance, if as yet undemonstrated fact, that the Secretary of State’s influence was…available…Clinton, through Pally, is giving the impression that the President’s chair will be similarly available to selected foreign governments, should she be elected.

The woman is either oblivious, and so incompetent, or she’s a corrupt politician, and so unfit.

Hmm….