Financial Literacy

1: What is the main issue with the current Korean National Pension System(국민연금)?

• It is overfunded

• It is expected to run out of funds in the future

• It offers excessive benefits

• It is only available to government employees

2: What are the pros and cons of the 'Chonsei(전세)' rental system in Korea?

• Pros: High liquidity; Cons: Low risk for tenants

• Pros: No monthly rent; Cons: Risk of deposit loss

• Pros: Easy to find housing; Cons: High monthly rent

• Government subsidized; Cons: Short-term leases only

3. 3. What is a mutual aid society (Saemaul Geumgo) in Korea?

• A type of government tax

• A community-based cooperative financial institution

• A student grant program

• A private loan company

4: What is Quantitative Easing(양적완화)?

• A method of increasing interest rates

• A policy to increase the money supply

• A type of savings account

•  A government spending program

5: How does the Federal Reserve(연방준비제도)'s decision to raise interest rates affect the Korean economy?

• It can cause inflation in Korea to decrease due to reduced demand for Korean goods in the US.

• It can result in a stronger Korean won, making Korean exports more competitive in the global market.

• It can lead to capital outflows from Korea as investors seek higher returns in the US and potentially weaken the Korean won.

• It has no significant impact on the Korean economy because Korea's monetary policy is independent of the US Federal Reserve's decisions.

6: What is the current issue being debated in Korean pension reform(연금개혁) regarding the pension insurance rate(보험료율) and income replacement ratio(소득대체율)?

• Whether to maintain the current pension insurance rate and increase the income replacement ratio to provide higher benefits in the short term

• Whether to increase the pension insurance rate and adjust the income replacement ratio to ensure long-term sustainability of the pension system

• Whether to increase the pension insurance rate while keeping the income replacement ratio the same to manage costs

• Whether to lower the pension insurance rate to reduce financial burden on employers while slightly decreasing the income replacement ratio

7: Why is Japan's currency, the Yen, currently so low in value?

• Because Japan has high interest rates, attracting the Yen's foreign investment

• Because Japan has low interest rates, making the Yen less attractive to investors

• Because Japan has high inflation reducing the value of the Yen

• Because Japan's economy is growing too quickly

8: What is the difference between KOSPI and KOSDAQ?

• KOSPI includes only technology stocks, while KOSDAQ includes all types of stocks

• KOSPI is for large companies in Korea, while KOSDAQ focuses on smaller companies

• KOSPI is for international companies, while KOSDAQ is for domestic companies

• KOSPI is managed by the government, while KOSDAQ is managed by private investors

9: What is the Housing Subscription System(주택 청약 제도) in Korea?

• A system where only government employees can apply for housing

• A lottery-based system allowing citizens to apply for the right to purchase new apartments at market price

• A system where citizens subscribe to a housing plan and collect points to get chances to purchase new apartments

• A direct purchase system with no waiting period