A survey on Financial Literacy

By:

Divij Chaskar A005 Mihir Narayan A009 Yoshit Khatadia A020 Atharva Watulkar A002

This survey is designed to measure the degree of awareness about the financial markets. The
goal of this questionnaire is to understand the familiarity undergraduates have with financial
market instruments.

The following questions are multiple choice and employ a 5-point Likert Scale
ranging from Strongly Agree to Strongly Disagree. The questions are stated as positive or
negative statements and respondents have to select the degree with which they agree/disagree
with the statement. For positive statements which underline better financial literacy, the
respondents will get a bigger score (5 for Strongly Agree, 4 for Agree, 3 for Undecided, 2 for
Disagree and 1 for Strongly Disagree). The scoring reveres for negative statements. The
negative statements will be put in order to check and correct for the subject’s attention while
reading the questions. It will correct for a negative attention bias on the part of the
respondent.

Instructions for the respondents: The following statements are related to financial markets.
Mark the option according to how much you agree or disagree with the statements.

1. Mutual Funds are a safe way to invest your money.

Strongly Disagree Disagree Undecided Agree Strongly Disagree

2. Buying an Insurance is not an investment

Strongly Disagree Disagree Undecided Agree Strongly Disagree
3. One must save a part of one’s income.
Strongly Disagree Disagree Undecided Agree Strongly Disagree
4. Periodically maintaining financial records.
Strongly Disagree Disagree Undecided Agree Strongly Disagree
5. Health insurance is important in today’s world.
Strongly Disagree Disagree Undecided Agree Strongly Disagree
6. Buying an insurance reduces financial risk.
Strongly Disagree Disagree Undecided Agree Strongly Disagree
7. Paying back loans and dues on time improves your Credit Score.
Strongly Disagree Disagree Undecided Agree Strongly Disagree

For the following questions select how important or unimportant the statements are:

1. Budgeting your income and planning for expenses.

Very Important Unimportant Neutral Important Very Important
2. Maintaining an adequate insurance coverage.
Very Important Unimportant Neutral Important Very Important
3. Regularly paying monthly premiums.
Very Important Unimportant Neutral Important Very Important
4. Periodically updating your investment plan.
Very Important Unimportant Neutral Important Very Important
5. Paying your bills on time.
Very Important Unimportant Neutral Important Very Important
6. Setting up long term financial goals.

Very Important Unimportant Neutral Important Very Important

For the following questions select the option that seems like the most correct answer for the
question. Marking Scheme: The correct option will be marked as 1, while wrong answers will
be marked 0.

1. Which of the following are insurance companies?

A. Tata AIG
B. ICICI Bank
C. RBI
D. IL&FS
2. What is true about a saving account?
A. You can withdraw more than your balance.
B. You earn an interest rate on the money deposited.
C. You can only withdraw your money after 6 months or 1 year.
D. You cannot write a check on your account.
3. Which account requires you to keep your money for a certain period of time and pay a
fine if you withdraw your money before maturity?
 A. Savings Account.
B. Fixed Deposit.
C. Current Account.
D. Demat Account.
4. What according to you is the main reason to purchase the insurance?
A. Protect you from an incurred loss.
B. Protect you from a future loss.
C. Reduce the chance of accidents.
D. Provide you with Investment gains.
5. A premium on an insurance is:
A. A sum that you receive every month from the insurance company.
B. Money you get when you file a claim.
C. A periodic instalment one pays to the insurance company.
D. Extra benefits you get by buying an insurance.

Demographic details:

Name:

Age:

Gender

Course: College/Institution:

What is your average annual family income?

A. <1,00000
B. 1,00,000-5,00,000
C. 5,00000-10,00,000
D. 10,00,000-20,00,000
E. >20,00,000

Further Information:

1. Which of the following insurance have you or your family members purchased
before?
A. Health Insurance
B. Life Insurance
 C. Auto Insurance
D. General Insurance
E. Accidental damage insurance (mobile phones)
F. None of the above
G. All of the above

2. Tick the type of insurance you have heard of before or are familiar with.
A. Health Insurance
B. Auto Insurance
C. Travel Insurance
D. Financial Insurance
E. Life Insurance
F. General Insurance
G. Deposit Insurance
H. None of the above
I. All of the above
3. Following are the types of financial markets, select the ones you are familiar with.
A. Equity
B. Futures
C. Money Market
D. Options
E. Commodities
F. Currencies
4. Do you or any of your family members have insurance?
A. Yes
B. No
5. Where did you learn about financial products like mutual funds, insurance, pension
fund?
A. Professor
B. Textbooks
C. Advertisements or Media
D. Friends
E. Family Members
F. Agent
REFERENCES

1. Atkinson, A. and F. Messy (2012), "Measuring Financial Literacy: Results of the

OECD / International Network on Financial Education (INFE) Pilot Study", OECD
Working Papers on Finance, Insurance and Private Pensions, No. 15, OECD
Publishing, Paris, https://doi.org/10.1787/5k9csfs90fr4-en.
2. OECD/INFE (2015). Toolkit for measuring financial literacy and financial inclusion.
Retrieved from: https://www.oecd.org/daf/fin/financial-
education/2015_OECD_INFE_Toolkit

3. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.392.4650&rep=rep1&type=
pdf
4. https://www.abacademies.org/articles/Financial-Literacy-Among-Undergraduate-
Students-Empirical-Evidence-From-Ghana-1528-2635-22-6-299.pdf
5. http://oregon.4h.oregonstate.edu/sites/default/files/projects/ya4-
h/uwex_wordingforratingscales.pdf