Personal Finance Survey Questionnaireby adminDecember 31, 2019December 31, 2019 Well-engineered personal finance questions to evaluate your financial knowledge. 16 questions, 5 minutes. 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 Less than $102 I don´t know Suppose you had $100 in a savings account and the interest rate is 20% per year and you never withdraw money or interest payments. After 5 years, how much would you have on this account in total? More than $200 Exactly $200 Less than $200 I don´t know 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? More than today Exactly the same Less than today I don´t know Assume a friend inherits $10,000 today and his sibling inherits $10,000 3 years from now. Who is richer because of the inheritance? My friend His sibling They are equally rich I don´t know Suppose that in the year 2050, your income has doubled and the prices of all goods have doubled too. In 2050, how much will you be able to buy with your income? More than today The same Less than today I don´t know Which of the following statements describes the main function of the stock market? The stock market helps to predict stock earnings The stock market results in an increase in the price of stocks The stock market brings people who want to buy stocks together with those who want to sell stocks I don´t know Which of the following statements is correct? Once one invests in a mutual fund, one cannot withdraw the money in the first year Mutual funds can invest in several assets, for example invest in both stocks and bonds Mutual funds pay a guaranteed rate of return which depends on their past performance I don´t know Which of the following statements is correct? If somebody buys the stock of firm B in the stock market He owns a part of firm B He has lent money to firm B He is liable for firm B’s debts I don´t know Which of the following statements is correct? If somebody buys a bond of firm B: He owns a part of firm B He has lent money to firm B He is liable for firm B’s debts I don´t know Considering a long time period (for example 10 or 20 years), which asset normally gives the highest return? Savings accounts Stocks Bonds I don´t know Normally, which asset displays the highest fluctuations over time? Savings accounts Stocks Bonds I don´t know When an investor spreads his money among different assets, does the risk of losing money Increase Decrease Stay the same I don´t know If you buy a 10-year bond, it means you cannot sell it after 5 years without incurring a major penalty. True or false? True False I don´t know Stocks are normally riskier than bonds. True or false? True False I don´t know Buying a company stock usually provides a safer return than a stock mutual fund. True or false? True False I don´t know If the interest rate falls, what should happen to bond prices? Rise Fall Stay the same I don´t know Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.