What are financial reasoning tests?
Financial reasoning tests are not too dissimilar to numerical reasoning tests. Most financial reasoning tests involve looking at graphs, tables and other numerical problems and then showcasing your arithmetic, ratio and percentage knowledge through challenging questions with multiple choice answers. As you might expect, the test is most popular with employers in the finance industry, looking to find candidates with a proven aptitude for numbers and keeping calm under pressure. As always, we recommend practising financial reasoning tests, and as many as you can, before taking the test - it’s the fastest way to hone your skills, improve your confidence and increase your speed.
Why do employers use financial reasoning tests?
Employers such as KMPG and PWC use the financial reasoning test when they’re looking to hire people with strong numerical skills - vital in the financial sector. As the job market becomes more and more competitive, aptitude tests like these offer employers another way to judge between people, many of whom will have very similar skills and experience levels on paper. The good news is, you really can set yourself up for success with an aptitude test, as you can practice lots beforehand.
What is the financial reasoning test format?
There’s more reading that you would perhaps expect in a numbers-based test. In fact, most of the challenges start with passages of approximately 150-250 words to read - this is to test how skilled you are at filtering out important information from big blocks of text. The language can also be more complex and specific than in a numerical reasoning test, which is another reason to ensure you’ve practised a few papers beforehand. As you work through the questions, you’ll have to show your knowledge on everything from graphs and equations, to ratios and averages.
What skills does financial reasoning test?
The financial reasoning test examines your basic mathematical skills, as well as your knowledge of more specific financial concepts such as profit margins and market capitalisation. Obviously this test is most widely used by employers in the financial sector, but businesses from a wide variety of sectors may also use the test if they’re looking to hire for jobs where financial knowledge is important.