One of my favorite people to read is Will Deener in the Dallas Morning News business section. This week he had an article about financial literacy. He reports that a five question quiz administered by FINRA Investor Education Foundation proved to be very disappointing. The FINRA - Financial Industry Regulatory Authority - regulates the securities industry.
Nationally, only 38 percent of the respondents passed the test. That means 62 percent answered three questions or less correctly. Remember it was a five question exam.
Just a quick example of the questions. "Suppose you have $100 in a savings account earning 2 percent interest per year. After five years, how much would you have?" The answer choices were: more than $102; exactly $102; or less than $102. I agree with Mr. Deener’s comment, "Please God, never allow me to be locked in the same room with the persons who answered less than $102."
Trust me, the other questions were no more difficult than this one. And again, I agree with Mr. Deener, when he comments about the 62 percent failure rate, "that should frighten us all."
I took the exam and yes, I answered all correctly.
I also know to get out of the rain to avoid getting wet.
PMO
©2013
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