Can You Answer These Basic Money Questions?

The NY Post published an article Most Americans can’t answer these 4 basic money questions.   They questioned “Millennials” and “Boomers” to see who were most knowledgeable about investing.
Here are the questions – see how well you do.

1. Which of the following statements describes the main function of the stock market?
   A) The stock market brings people who want to buy stocks together with people who want to sell stocks.
   B) The stock market helps predict stock earnings
   C) The stock market results in an increase in the price of stocks
   D) None of the above
   E) Not sure
2. If 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) Exactly $102
   B) Less than $102
   C) More than $102
   D) Not sure
3. If the interest rate on your savings account was 1 percent per year and inflation was 2 percent per year, after 1 year, how much would you be able to buy with the money in this account?
   A) More than today
   B) Exactly the same as today
   C) Less than today
   D) Not sure
4. Which provides a safer return, buying a single company’s stock or a mutual fund?
   A) Single company’s stock
   B) Mutual fund
   C) Not sure
   D) Not sure

The correct answers are

1. A
2. C
3. C
4. B

If you had trouble getting the right answers you could benefit from the guidance of a good RIA (Registered Investment Advisor).