Advanced Financial Education Test ResultsBill Field2021-03-09T08:59:00-08:00
Advanced Financial Education Test Results
Average Score of 57.73% to Date
Percentage of Passing Scores to Date
Δ: Change in Averages from 2018: -1.22%
Participants to Date
You can take the test at the NFEC’s Financial Literacy Testing & Survey Center. Access 4 complimentary measurement tools, surveys, tests and to view results from past participants. NFEC clients can access the full Testing & Survey Center which includes over 50 online measurement tools.
9.83% - Investments in securities (stock market, mutual funds) adjust to market conditions by 3%
2.85% - 401k plans adjust to market conditions by 3%
72.19% - My net income needs to increase by 3% to maintain my current lifestyle.
9.25% - My savings need to increase by 3% to maintain my current lifestyle
5.88% - Uncertain
If you are unable to pay off the entire balance you owe in credit card debt, the best way to pay off the balance is to _____.
16.46% - Pay more than the minimum monthly payments on all your credit cards
11.19% - Pay off the card with the lowest balance first
64.77% - Pay the maximum your budget allows on the card with the highest interest rate.
6.03% - Pay the maximum payment on the card with the highest balance
1.58% - Uncertain
If inflation is at 2%, in what option below are you most likely to lose 2% purchasing power?
4.24% - Stock market
2.71% - Real estate
56.53% - Cash
3.75% - Commodities
2.24% - Bonds
28.28% - All of the above
2.24% - Uncertain
What is risk-based pricing?
3.68% - The cost of the deductible and premium added together
10.09% - The amount of money the insurance company pays toward your claim and the adjustment to your interest rate made by your lender
68.76% - Basing your insurance or loan pricing on the risk you pose to the company.
14.16% - All of the above
3.31% - Uncertain
Which of the following categories influence your FICO score?
1.61% - Outstanding debt
3.21% - Payment history
2.13% - Types of credit used
28.08% - A & B only
62.99% - All of the above
1.97% - Uncertain
What four main areas do lenders review to qualify a loan applicant?
6.96% - Credit, cash, education, and income
58.45% - Equity, credit history, assets, and debt-to-income ratio
8.2% - Equity, cash on hand, asset report scoring, and debt-to-income ratio
24.79% - Liquidity, credit history, asset report scoring, and debt-to-income ratio
1.6% - Uncertain
The biggest risk of owning long-term bonds for capital preservation is:
20.79% - Falling interest rates
50.03% - Rising interest rates
17.65% - Falling dollar
5.69% - Rising dollar
2.31% - Real estate valuation
3.26% - Uncertain
“With the rapid decline of defined benefit pension plans, reduction of social security benefits, and more complex investment options it is vital that people possess the financial knowledge they need to make qualified investment decisions. There is a multitrillion-dollar retirement funding gap in the US today, and this test demonstrates that the average person lacks sufficient knowledge to properly plan for their golden years. ”
– Vince Shorb, CEO
National Financial Educators Council