Financial reasoning tests are a type of aptitude assessment similar to numerical reasoning tests. Typically, you will be given a short passage of around 150–200 words and some related data presented in the form of a graph, chart or table.
As you are given more text than a typical numerical reasoning test, you will have more time to complete each question. The questions are usually focused on financial topics like profit/loss margins, balance sheets, and business statements.
Unsurprisingly, financial reasoning tests are often used by companies in the finance industry such as KPMG, Citigroup, and Deutsche Bank. You can also expect to come across financial reasoning tests if you’re applying for a finance position in other companies as well. The tests are used to assess a candidate’s ability to tackle numerical problems in a financial context.
Achieving a high score on your financial reasoning test is crucial to advancing to the next round of the application process. Check out our tips to prepare for a financial reasoning test:
Step 1: Practice
Before taking a financial reasoning test it is important to practice with online sample tests. These tests are designed to simulate the style and format of the test. Practicing sample tests will help you to build confidence and understand how questions are crafted and answered.
After taking a practice test, make sure you review your answers with the solutions, so you can identify any possible areas of weakness that you may need to focus on.
Step 2: Stick to what's in the text
The main reason to prepare for a financial reasoning test is to know what type of questions will come in the exam. You need to prepare topics based on the job position you are applying for.
The information you need to answer will be within the passage. So when preparing for financial assessment reasoning, stick to two basic principles:
Read the passage carefully
If you are unable to find the answer in the passage, then there is no answer there
Step 3: Take care of the timing
Financial reasoning tests are time-oriented and this can add pressure, which can affect your ability to decipher the answer logically. Therefore, it is important to read questions carefully without wasting your time.
Make sure you spend the minimum amount of time on each question, so that before submission you have enough time to review your answers. If you prepare this in advance, you can estimate the exact time you are spending on each question.
Step 4: Every word counts
You might receive some information in the passage that is irrelevant, but you should still read the passage without ignoring sentences and skipping lines. Each detail makes the full passage and helps you provide relevant information where required.
Make sure to read and re-read the passage tso that you fully understand all the information.
Step 5: Tricky questions
In the test, you may also find some tricky questions. These are worded in such a way to create confusion in the mind of the participant.
Take time to understand the question and re-read the passage carefully. Make sure to train your mind to understand and tackle tricky questions by practicing tests regularly.
Step 6: Remain calm
Last but not least, it is important to remain calm during the test. This will help you to remain focused and think logically. To relax your mind, take deep breaths and imagine a positive outcome.