3.2. Measures
3.2.1. Financial knowledge
The NLSY97 2007 survey (Wave 11) asked respondents the following three financial
knowledge questions aimed at testing basic but fundamental financial concepts regarding risk
diversification, interest rate, and inflation.
1. 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. (True/False)
2. Suppose you had $100 in a savings account and the interest rate was 2% per year.