What are financial reasoning tests?

Financial reasoning tests are incredibly similar to numerical reasoning tests, in that they will present financial information to you via graphs, tables and texts.

What format are financial reasoning tests?

Typically with a financial focused test, you will be given a short description of a scenario that is accompanied with extracts of numerical data. Passages of 150-250 words are likely to accompany each question, which requires you to filter and extract the necessary information quickly and effectively.

You will be expected to demonstrate knowledge of basic arithmetic (adding, subtracting, multiplication and division), ratios, percentages, average and interests.

As you are provided with more text than a standard numerical test, you will be given slightly longer to complete the exam.

What can make these tests difficult is the terminology used within the accompanying passages. Make sure you’re familiar with phrases such as “profit margin” and “market capitalisation” as these are commonly used within the financial sector.

Financial reasoning tests will also text your ability to complete more elaborate calculations compared to what is expected within a numerical reasoning test.

More importantly, these tests are often scored differently. In the event of a wrong answer, points may be deducted so you will need to be mindful of this.