This is actually an old quiz, part of a survey on financial literacy that the World Bank asked some 3,000 Filipino adults in 2014 in connection with a study on financial inclusion.
However, interest in it was revived recently when the Bangko Sentral ng Pilipinas (BSP) referred to it in a press statement issued May 28 ahead of the launch of nationwide financial literacy program with the Department of Education and BDO Foundation.
The program aims to equip the country’s public school teachers with basic knowledge and information on financial literacy to help them pass these on to their students. It’s also meant to help them manage their own finances to make sure they save enough and avoid getting into heavy debts, which is the lot of thousands of public school teachers.
In its press release, the BSP mentioned a World Bank study which found that only three out of 10 Filipino adults could answer three out of seven basic financial literacy-related questions. Only a measly two percent of the 3,000 Filipino adults surveyed can answer all questions correctly.
Below are the questions used by the World Bank to assess financial literacy. Find out if you are part of the two percent who can answer all questions correctly or the majority who need some coaching about money matters.
Imagine that five brothers are given a gift of Php1,000. If the brothers have to divide the money equally, how much does each one get?
Now, imagine that the five brothers have to wait for one year to get their part of the Php1,000, and inflation stays at 10 percent. In one year’s time will they be able to buy:
A) More with their share of money than they could today
B) The same amount
C) Less than they could buy today
D) It depends on the types of things that they want to buy
Suppose you put Php100 into a savings account with a guaranteed interest rate of two percent per year. You don’t make any further payments into this account and you don’t withdraw any money. How much would be in the account at the end of the first year, once the interest payment is made?
How much would be in the account at the end of five years? Would it be:
A) More than Php110
B) Exactly Php110
C) Less than Php110
D) It is impossible to tell from the information given
Let’s assume that you saw a TV set of the same model on sale in two different shops. The initial retail price of it was Php1,000. One shop offered a discount of Php150, while the other one offered a 10-percent discount. Which one is a better bargain, a discount of Php150 or a discount of 10 percent?
A) A discount of Php150
B) They are the same
C) A 10-percent discount
Which of the following statements best describes the primary purpose of insurance products?
A) To accumulate savings
B) To protect against risks
C) To make payments or send money
Suppose you have money to invest. Is it safer to buy stocks of just one company or to buy stocks of many companies?
A) Buy stocks of one company
B) Buy stocks of many companies
Elyssa Lopez is a staff writer of Entrepreneur PH. Follow her on Twitter @elyssalopz