Question

Financial literacy refers to:

a) How well you manage the financial stressors in your life.

b) How well you understand and use personal finance information.

c) How well you score on standardized measures of personal finance.

d) Your maximum score on a comprehensive consumer finance test.

Answer 1

b) How well you understand and use personal finance information

Step-by-step explanation:

Financial literacy involves understanding and using financial information. When applied, a person is in a position to understand their financial situation and possess the ability to make well informed decisions on matters relating to money. A financially literate person understands how much money comes in and how much goes out and for what purposes. All aspects of their financial wellbeing are intentional.