Cyprus Enters Top Five Countries with Low Financial Literacy

According to the results of a new study by the European Commission, Cyprus has entered the top five countries with the lowest level of financial literacy among the 27 European Union countries.

According to the study's findings, the majority of Cypriots lack basic knowledge necessary for managing family budgets, as well as making correct decisions when obtaining loans from banks. During the testing, the researchers asked respondents five questions about inflation, compound interest, pricing of basic assets, risk-return relationship, and risk diversification.

In addition to Cyprus, the top five of the anti-rating includes Greece, Portugal, Romania, and Bulgaria.

Finland ranked first in the European Union in terms of the population's level of financial literacy. Estonia, Denmark, Slovenia, and the Netherlands follow. Overall, the study results showed that residents of Northern and Western Europe are better versed in basic financial matters. Only one Southern European country, Malta, made it into the top ten of the rating.