Here's some sad and not too surprising data from a new Treasury survey. 85% of Americans got at least one of these questions wrong. Can you beat the average?
1) Buying a single company's stock usually provides a safer return than a stock mutual fund. True or false?
53% of Americans got this right.
2) A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage, but the total interest paid over the life of the loan will be less. True or false?
76% of Americans got this right.
3) If interest rates rise, what will typically happen to bond prices?
28% of Americans got this right.
4) 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.
65% of Americans got this right.
5) 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.
78% of Americans got this right.
