Standard & Poor's, Gallup, the World Bank, and George Washington University gave a five-question test on personal financial concepts to 150,000 people in more than 140 countries. Only 33% of people passed by demonstrating competency in three out of the four topics covered: risk, inflation, interest, and compound interest. Here's the quiz:



1. Risk Diversification:



Question: Suppose you have some money. Is it safer to put your money into one business or investment, or to put your money into multiple businesses or investments?





2. Inflation:



Question: Suppose over the next 10 years the prices of the things you buy double. If your income ALSO doubles, will you be able to buy less than you can buy today, the same as you can buy today, OR more than you can buy today?





3. Numeracy and Comparison (Debt):



Question: Suppose you need to borrow $100. Which is the lower amount to pay back: $105 or $100 plus three percent?





4. Interest Compounding (Saving):



Question: Suppose you put money in the bank for two years and the bank agrees to add 15 percent per year to your account. Will the bank add MORE money to your account the second year than it did the first year, or will it add the same amount of money both years?





5. Interest Compounding (Saving and Numeracy):



Question: Suppose you had $100 in a savings account and the bank adds 10 percent per year to the account. How much money would you have in the account after five years if you did not remove any money from the account?