Page 1 of 3 1 2 3 LastLast
Results 1 to 25 of 52
  1. #1
    Join Date
    Aug 2007
    Location
    At the beach
    Posts
    19,067

    Do you understand money?

    http://www.theatlantic.com/internati...d-money/361851

    Do you understand money? Let’s see how well you do with the following questions.

    1. Suppose you had $100 in a savings account and the interest rate was 2 percent per year. After five years, how much do you think you would have in the account if you left the money to grow? A) more than $102; B) exactly $102; C) less than $102; D) do not know; refuse to answer.

    2. Imagine that the interest rate on your savings account is 1 percent per year and inflation is 2 percent per year. After one year, would you be able to buy A) more than, B) exactly the same as, or C) less than today with the money in this account?; D) do not know; refuse to answer.

    3. Do you think that the following statement is true or false? “Buying a single company stock usually provides a safer return than a stock mutual fund.” A) true; B) false; C) do not know; refuse to answer.

    The correct answers are 1-A; 2-C; and 3-B.

    How did you do? Did you respond correctly to all three questions? If you did, then you belong to a surprisingly small global minority.

    In Russia, 96 percent of those surveyed could not answer the three questions correctly. While that might be expected of a post-communist nation, the mecca of capitalism didn’t exactly yield glowing results—only 30 percent of Americans aced the quiz. The best-performing respondents were the Germans (53 percent got a perfect score) and the Swiss (50 percent), but this still leaves almost half of each country’s population without a basic understanding of financial matters. In countries with relatively strong economies, the numbers are sobering: 79 percent of Swedes, 75 percent of Italians, 73 percent of Japanese, and 69 percent of French could not respond correctly to all three questions.

    So how did you do?
    Quote Originally Posted by leroy jenkins View Post
    I think you'd have an easier time understanding people if you remembered that 80% of them are fucking morons.
    That is why I like dogs, more than most people.

  2. #2
    Join Date
    Dec 2012
    Posts
    17,749
    In Russia, question worded differently.

    1. Suppose you have 100 rubles in savings account and interest rate 2 percent per year. After five years, how much you have in account if money left to grow? A) more than 200 rubles, you help Vladimir Putin ; B) exactly 102 rubles; C) less than 102 rubles; you pay off local police to not arrest son D) do not know; bank no longer in business.

  3. #3
    Join Date
    Mar 2008
    Location
    'Merica
    Posts
    2,159
    Aced it.

    The first two questions really should list how often the interest compounds. If you adjust things just right the answer could be any of the above for #2. ie if the interest in #2 compounds instantaneously, and inflation is compounded once annually, you end up with P(e-(1+i)) or something like that, where P is the principal, e=2.718....=Eulers number, and i is the inflation rate.

    That should also tell you that I didn't get laid this weekend.
    Quote Originally Posted by Smoke
    Cell phones are great in the backcountry. If you're injured, you can use them to play Tetris, which helps pass the time while waiting for cold embrace of Death to envelop you.

  4. #4
    Join Date
    Aug 2006
    Location
    Somewhere around the west
    Posts
    2,587
    I always need a translator.
    Johnny's only sin was dispair

  5. #5
    Join Date
    Jan 2008
    Posts
    10,102
    Quote Originally Posted by farmer View Post
    Aced it.

    The first two questions really should list how often the interest compounds. If you adjust things just right the answer could be any of the above for #2. ie if the interest in #2 compounds instantaneously, and inflation is compounded once annually, you end up with P(e-(1+i)) or something like that, where P is the principal, e=2.718....=Eulers number, and i is the inflation rate.

    That should also tell you that I didn't get laid this weekend.
    Ummm...no matter how frequently its compounded, 1% is not going to be better off than 2% after a year.

  6. #6
    Join Date
    Dec 2002
    Location
    Uptown
    Posts
    6,208
    Here, I translated it for you:

    1. If the bank compounds monthly, I would end up with $10.51 in interest. If I were so stupid to leave it in there at 2%. Two fucking percent??, Motherfuckers? Shit, you can't even get a decent hooker, let alone blow for $110 and 51 fucking cents.

    2. 1% interest??? Not even gunna answer that one. I'd pull my money and open a Check Cashing bidness. Gunna make like 50% a week.

    3. Mutual funds are for pussys. Didn't you hear I'm gunna open a Check Cashing bidness?
    Living vicariously through myself.

  7. #7
    Join Date
    Sep 2001
    Location
    The Cone of Uncertainty
    Posts
    49,306
    What's the service charge on the savings account?

  8. #8
    Join Date
    Jan 2008
    Posts
    10,102
    Quote Originally Posted by iceman View Post
    What's the service charge on the savings account?
    Aaaand its gone.

  9. #9
    Join Date
    May 2009
    Location
    BFE
    Posts
    551
    There is no mention of there being a test in the post header.

  10. #10
    Join Date
    Dec 2002
    Location
    Uptown
    Posts
    6,208
    Quote Originally Posted by iceman View Post
    What's the service charge on the savings account?
    $35 per year. When you run out of money in the third year, they start charging you an additional $35 per month overdraft charge.
    Living vicariously through myself.

  11. #11
    Join Date
    Oct 2003
    Location
    Looking down
    Posts
    50,491
    Stupid Russians.

  12. #12
    Join Date
    May 2008
    Location
    37ft above the hood
    Posts
    16,576
    Money is a human construct, it's not real.
    Zone Controller

    "He wants to be a pro, bro, not some schmuck." - Hugh Conway

    "DigitalDeath would kick my ass. He has the reach of a polar bear." - Crass3000

  13. #13
    Join Date
    Oct 2007
    Posts
    12,609
    So you should open a bank that caters to Russians. Easy money.

  14. #14
    Join Date
    Jun 2006
    Location
    Ventura Highway in the Sunshine
    Posts
    22,431
    i guess this means I are smarter then 96% of ruskies and 70 % of 'merkins.

    I are really smart.

    I agree it is a constitutional right for Americans to be assholes...its just too bad that so many take the opportunity...
    iscariot

  15. #15
    Join Date
    Dec 2010
    Posts
    7,390
    Quote Originally Posted by hutash View Post
    i guess this means I are smarter then 96% of ruskies and 70 % of 'merkins.

    I are* really smart.
    Is

    Fify78
    Quote Originally Posted by Hugh Conway View Post
    Hugh Conway sucks
    Quote Originally Posted by Meadow Skipper View Post
    I guess stfu might be right about steel toed boots
    Quote Originally Posted by pedoherp69 View Post
    I know actual transpeople.
    Quote Originally Posted by rokjoxx View Post
    We is got a good military, maybe cause some kids get to shooting sports early here.

  16. #16
    Join Date
    Oct 2005
    Posts
    11,736
    Quote Originally Posted by JimmyCarter View Post
    Aaaand its gone.

  17. #17
    Join Date
    Nov 2003
    Location
    Stuck in perpetual Meh
    Posts
    35,247
    Quote Originally Posted by hutash View Post
    i guess this means I are smarter then 96% of ruskies and 70 % of 'merkins.

    I are really smart.
    Quote Originally Posted by stfu&gbtw View Post
    Is

    Fify78
    *be

    890abc

  18. #18
    Join Date
    Jan 2013
    Location
    Gnarnia
    Posts
    1,547
    Goddamn, mericans are dumb.
    "4ply is so quiche"
    -Flowing Alpy

  19. #19
    Join Date
    Dec 2007
    Location
    Hell Track
    Posts
    13,844
    Quote Originally Posted by IVplay View Post
    Goddamn, mericans *are dumb.
    *is

    .........

  20. #20
    Join Date
    Feb 2010
    Location
    Colorado
    Posts
    9,356
    Wolf of Wall Street in Moscow anyone?

  21. #21
    Join Date
    Sep 2007
    Location
    On the beach somewhere
    Posts
    635
    Really odd quiz. Using his phrasing, I guess the takeaways are:

    1) Interest gives you more
    2) Savings accounts let you buy less
    3) Mutual funds are safer

    Hey honey, that savings acct is screwing us! We better go invest in a mutual fund!

  22. #22
    Join Date
    Feb 2006
    Location
    Among Greatness All Around
    Posts
    6,628
    The title really needs to be changed to "Do you understand basic Finance and investing- using it for lending and borrowing as the quiz questions ask really - money is nothing more in today's society than goverment declared legal tender for payment for goods and services and repayment of debts.

  23. #23
    Hugh Conway Guest
    I don't understand why my fucking dog likes to fucking eat the stuff.

  24. #24
    Join Date
    Dec 2002
    Location
    oregon
    Posts
    2,870
    Like most Americans I just spend my money on cheap, poorly made consumables so this whole "compound interest" thing is of little interest.
    "These are crazy times Mr Hatter, crazy times. Crazy like Buddha! Muwahaha!"

  25. #25
    Join Date
    Mar 2008
    Location
    'Merica
    Posts
    2,159
    Quote Originally Posted by JimmyCarter View Post
    Ummm...no matter how frequently its compounded, 1% is not going to be better off than 2% after a year.
    I fucked up the equation (e is for i=100%), but the theory holds true. Without looking it up, I think you take the limit of the compounding interest formula as the number of periods approaches infinity and my gut feeling is that you end up greater than 1.02 for a compound factor.

    I'm ok with being proven wrong, but show merge math if that's the case.

    If it doesn't work at 0.01 and 0.02, it will eventually get there if you incrementally increase both the interest and inflation rates.
    Quote Originally Posted by Smoke
    Cell phones are great in the backcountry. If you're injured, you can use them to play Tetris, which helps pass the time while waiting for cold embrace of Death to envelop you.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •