The Three Questions Most Americans Can’t Answer About Their Money

You may think you have a pretty good grasp on your finances. But how is your overall financial literacy? It may not be as strong as you think. A recent study found that a majority of Americans could not answer three simple questions about interest rates and investing. Seventy percent of respondents did not get them all correct. That led one of the study’s co-authors, Annamaria Lusardi, to tell the Freakonomics podcast that Americans are “at a crisis level” in terms of their financial literacy. So how would you do on this test? We challenge you to take the quiz and see if you can perform better than the rest. The Money Quiz Question: The rate of inflation is 2 percent per year. The interest r

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