Two-thirds of Americans can’t pass a five-question financial literacy test. What about Jow Forums?
usfinancialcapability.org
This is a test a kid in grade 5 should be able to pass. Are Americans getting dumber? What's going on with your education system? I thought everyone and their dog was going to University down there.
Other urls found in this thread:
usfinancialcapability.org
youtube.com
myredditvideos.com
twitter.com
The only one I didn't know in 5th grade was the bonds one
I really don’t know anything about finance and I got 5/6 (there’s a bonus question).
Same score, missed the bonds one
fug
got the bond question and bonus question wrong
What's going to happen when they stop paying the bill for the "Russia please don't ass rape and annex our life" fund?
I understand why europoors are so upset about americans lately. They're about to be fucked hard.
6/6
Isn't this just common sense?
Though I had to think a long time about the first question because I couldn't figure out why it was asking about just $102 and not $110. Bit of a trick question. Although the answer is the same either way.
I find it hard to believe anyone here could get less than 6/6 on that. The bond question I suppose is excusable if you're not interested in finance or understanding how the world works. The other 5 are 3rd grade math at the most.
dont know shit about bonds...oh well
>Isn't this just common sense?
I forgot who said this, but
"The problem with common sense is that it isn't."
This one is more interesting, investor literacy
usfinancialcapability.org
I guess the answers of those "investors" explains Jow Forums
moooooooooooooooooooom! i got 100% correct
I like this one. All you NEET's trying to make it should be getting 100% on these.
I failed at the bond question :(. Help please user! explain bonds to me. I never understood them!
It's interesting because almost everyone I interact with is intelligent. I guess it shows how people don't know how the other half (or two thirds) live.
i think Jow Forums is also likely to be a higher level of intelligence than the average person. we may be reading shitposts, but we're actually reading with our spare time, and that kind of self-education is what puts you past the averages.
that being said i got 5/6 (bonds) so i might be on the retarded side
>What's going on with your (((education system)))?
>he thinks they want the goyim to understand these things
As most here 5/6, missed the bonds one.
Any smart biztard wants to give us tldr about bonds?
47.3% of the population has an IQ of 99 or less. How many double-digit people do you THINK you know?
You do realize they explain the answer to every question after scoring?
the education system is an assembly line where intelligence is "quantified" in a way that allows them to pull profit out of americans at the second tier of education. 2nd problem is they dont teach actually thinking, not how to think just what to think. its only memorization to get the paper that will allow you to take out an education loan and continue to vote against your interests.
Russia can bring it their economy is shit they can't afford to go to war with America
Haha didn't see that, I only quickly glanced at scores
got 5/6. I said I dont know for the mutual fund one because some mutual funds are more risky than some stocks and vice versa.
when intrest rates go up, new bonds become better so people sell old bonds. its actually sort of confusing because the question is asking about the price of already existing bonds.
a bond is priced as the present value of the coupon payments (scheduled dividends) plus the par value. when you buy say a 10 year bond with a par value of $1000 and coupon rate of 5%, you will get 5% of 1000 every year and then 1000 at maturity. I only mention this aspect because it's important to understand how the cash flows work to understand why the price would change. basically you're sitting with something that will pay back an amount similar to what you bought in for that will give you 10 years of income at a low risk percentage (for US government bonds). if you are holding one of these, you are stuck with that coupon rate for 10 years. they are tradeable though. so if similar maturity new bonds by the same issuer are coming out with a higher coupon (interest rates rise), the old bonds with a lower coupon will be less desirable, all else equal, because they pay a smaller amount than what's currently available for $1000. so in the secondary market they will have to be discounted to the point where they are competitive with the new higher rate bonds. the only mechanism to do this is to sell them for less, so that someone buying them would get the same return as if they are buying the current newly issued bonds on offer. the reverse happens when interest rates fall, the older bonds that are out there and have higher interest rates become more desirable, and become priced to yield a competitive rate with the lower interest rate bonds being issued. the only mechanism to do this is to raise the buy in price on those old bonds.
I know what was their inspiration for this test
youtube.com
i'm more proud that i got 8/10 on the second one, it's quite a bit harder. 138IQ since people seem to like that stat
I got the bond question correct, but for the wrong reason. I figured that bonds are usually considered a very safe and low-yield investment, so if the interest rate goes up then something fishy is going on within the government and maybe it's time to get out.
>couldn't afford to go to war with Germany either...
>There are always more Russians.
ditto. I got confused by this year's thing with both interest rates and bond yields increasing at the same time.
Hi zerohedge
Does this reasoning make sense or it's total bullshit?
Burger here 5 out of 6
here's a numerical example:
>$100 bond with 1% yearly coupon rate and five years to maturity:
1/1.01 + 1/1.01^2 + 1/1.01^3 + 1/1.01^4 + 100/1.01^5
= $99.05 (today's price of the bond)
and for contrast - a higher coupon rate
>$100 bond with 10% yearly coupon rate and five years to maturity:
10/1.1+10/1.1^2+10/1.1^3+10/1.1^4+100/1.1^5
= $93.79 (today's price of the bond)
It's bullshit. Bonds are a fixed-interest loan, so when interest levels rise the bonds value drops. Bonds on their own are not necessarily low-risk either.
7/10 on this. There is some US specific stuff that caught me off guard. Also I don't like the first question. Time frame is critically important to potential return/risk ratio when comparing high risk to low risk investments.
6/6
EZ quiz
6/6 here, but honestly the bonds one is bullshit. There's no way most 5th graders even know what a bond is, nevermind its relationship with interest rates.
Oh shit, got 8/10 on the 2nd quiz. Time to become a crypto influencer.
Most people in their 20's couldn't give a clear answer on what a bond is. The best you'll get is "some kind of investment thing".
Fuck a bond
Got the bonds question wrong because i have no idea what the fuck are bonds since we dont have that here.
t. African.
Otherwise the rest is just ezpz, how are burgers this stupid?
t.kike
if you didn't get 10/10 on the investor quiz make sure to re-evaluate your life choices if you are working anywhere near finance. look at the ones that you got wrong and understand why. that was piss easy
you dont have bonds in Africa?
Got the bond question wrong but the others are easy
statistically about 47.3
5/6 got the first question wrong
Fucks sake that was simple & I pump porta potties for a living!
Isn't 70% of the population like below 120 IQ? Btw, any IQ below 120 is considered average as far as I know.
Missed the fucking bonds one.
I didn't get the bond question. Oh well.
An IQ of 100 is average in every sense of the word. Someone with an IQ of 115 is around the top 16% of people.
If you don't understand why 100 is average IQ you are most likely under 100
American 6/6, but I am a financial advisor
Why are people so stupid? Chicago here.
No, but most 5th graders should get 3/6.
European here cap
LAW degree
English as second language
Did pretty good
8/10 on the investor knowledge one
I'm a third world Poorfag and only missed the bonds one.
It's not even financial, it's pure math except the bonds one
You guys are a disgrace. And to think I'm going to have to treat your ignorant asses at the hospital. Plus I'm black... Fuck me.
Surprisingly got 6/6 but guessed on the bond one and wasn’t sure about another one or two. But alright. Still 90% down on my shitcoins tho
>grade 5
of course its a fucking leaf.
Thanks for the answer that’s the best I’ve seen.
t. brainlet here.
What the fuck, do millennial and 30 yr old boomers even have bonds?
>mfw got all the answers right
Well, our education system is fucked so I would say that is the main reason.
>50 yr old tradionalist
I got the first one wrong for the same reason as I didn’t know what a municipal bond was.
same
lmao @ all these niggas who don't know about bonds
Lol you do know that that is not how loans work right? 110 is wrong... What is point of this board if people here do not eve know how to calculate interest?
if you don't know the answers to this get out of everything you fucking mouth breathers
Fuck, missed the one about bonds. That's boomer shit anyway
yes, it's mind-boggling. i have never seen so many dumb or mentally superficial people anywhere else. in my teens, i really thought america was great but i wouldn't want to relocate there anymore, the country seems so degenerate (fucked economy, (student) debt crisis, racial issues, daily gun shootings in schools, gang violence, EVERYONE is fucking obese = ugly af, losing wars all over the place, etc)
>whites are to blame for the literary drop
No
Holy fuck. The new fags click on external links on biz? A special kind of stupid.
Only took business early in secondary school and got 5/6, I don't even go on biz.
Don't know what bonds even are, though. I don't think they were even mentioned in my classes.
>newfags don't have umatrix and have javascript enabled, so are scared of clicking links
a special kind of stupid
> In general, investments that are riskier tend to provide higher returns over time than investments with less risk.
Ok then, I'll go all in on bitconnect, it seems to be the riskiest investment of all, muh gonna get rich
In a cold kentucky rain.
In a cold kentucky rain.
In a cold kentucky rain.
In a cold kentucky rain.
I got 3/6.
I don't know those fancy book learnin' words.
I4chan is without a doubt a forum of intelligent users. Reading shitposts from Jow Forums is better than reading from many other places, especially because there is a plethora of information and highly experienced and intelligent anons. I learned so much about finance because of Jow Forums.
I guessed the bonds answer correctly, but I honestly selected 'idk' because I don't touch bonds. Can't really blame yourself for not understanding something you don't utilize.
I understand how to solve them, but my brain is really retarded with math.
good thing the other two thirds of us are quite smart, right?
i chose not to answer correctly because (pic) is blantant proganda.
fucking boomers shilling their .00002% gain a year funds need to neck themselves
Single stock considered less safe than mutual fund? Are they trying to Jew us? Mutual funds always underlerform and the customers of them pay out the ass in fees.
diversification of risk fag
>yes, it's mind-boggling. i have never seen so many dumb or mentally superficial people anywhere else. in my teens, i really thought america was great but i wouldn't want to relocate there anymore, the country seems so degenerate (fucked economy, (student) debt crisis, racial issues, daily gun shootings in schools, gang violence, EVERYONE is fucking obese = ugly af, losing wars all over the place, etc)
this.
Mutts are human garbage who genuinely think they have the greatest country but 9 out of 10 times they score lower than most European countries on healthcare, education, quality of life and whiteness. But they are champions in niggers, homicides,drug overdoses, suicides and (((them))) among more civilized countries.
change my mind.
t. eurochad
It should've said index fund
Also, I didn't know the bond question. Never looked into bonds before.