Financial Literacy Questions - Health and Retirement Study (HRS)
These five financial literacy questions were developed by Lusardi and Mitchell (2006) and included in the 2004 Health and Retirement Study (a survey of US households ages 50 and older) and the 2009 National Financial Capabilities Study (a study by FINRA Investor Education Foundation that provided insights about the financial skills, knowledge, and habits of American consumers). These questions also serve as foundational questions for most surveys that measure financial literacy. The first three questions were designed to assess understanding of the following core financial concepts: Compound interest, rates of return, and risk diversification. Questions 4 and 5 test knowledge about mortgage interest and bond prices.
Count the total number of correct responses.