Since 2008, the Chicago Booth/Kellogg School Financial Trust Index has taken the pulse of Americans’ attitudes toward the country’s financial system. The latest results, released in July, paint a relatively rosy picture. Note the emphasis on relatively. Can you correctly gauge the prevailing sentiments?
1) The most recent Index is at an all-time high, with what percentage of respondents trusting the U.S. financial system?
2) Which of the four segments studied has received the highest trust scores for the past three quarters?
A. The stock market
C. Mutual funds
D. Large corporations
3) As the trust level has increased, the anger level has decreased. A year ago, 49% of respondents said they were “angry at the current situation.” In the most recent survey, that figure dropped to:
4) In March, 14% of respondents said they planned to increase their investments in the stock market. In June, that figure:
A. Rose to 17%
B. Rose to 35%
C. Dropped to 11%
D. Held steady
5) More than half of all respondents believe the government should intervene to:
A. Impose a cap on executive compensation
B. Regulate the financial sector
C. Improve the way corporations are run
D. All of the above
6) In the inaugural survey, conducted in December 2008, participants were asked how government intervention in the financial markets had affected their confidence in the financial system. The percentage who said it increased their confidence was:
7) In that same survey, respondents were asked to identify the main cause of the financial crisis. Put their top answers in order, from least commonly cited to most commonly cited.
A. Lack of oversight or regulation
B. Managers’ greed and poor corporate governance
C. Excessive government intervention
D. Global imbalances
8) Rank the following kinds of banks in order, from lowest to highest, based on the public’s current trust in them.
A. National banks
B. Local banks
C. Credit unions
D. Banks in which the government has a stake
Source: Chicago Booth/Kellogg School Financial Trust Index, July 2010
Answers: 1–A; 2–B; 3–D; 4–A; 5–D; 6–A; 7–D, C, A, B; 8–D, A, B, C