QAEconomics › What’s the best definition of financial literacy?
Q

What’s the best definition of financial literacy?

A. The ability to find, evaluate, utilize, share, and create financial content.

B. The business or services conducted by a bank.

C. The ability to use knowledge and skills to manage financial resources effectively.

D. The efficient and effective management of money.

A

Answer: C. The ability to use knowledge and skills to manage financial resources effectively.

Financial literacy is the ability to manage money effectively using knowledge and skills. For money to be managed effectively, an individual needs to have knowledge on certain financial topics like investments, budget, savings, insurance, etc. With this, people are better prepared as regards the effective financial resources in their day-to-day lives. A country with a vast number of financial literates tends to have fewer people in extreme poverty.

3 weeks ago
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