Who Wants To Be A Millionaire?
Instructor Name Personal Finance
#1 What is the “PYF” principle?
A: Provide For Yourself
B:
Peanuts, Yogurt & Fruit
C: Pay Yourself First
D:
Principal, Years, Funds
Pay Yourself First
#2 Which of the following is a stock exchange?
A: NASDAQ
B:
DJIA
C: IPO
D:
AAA
NASDAQ
#3 What is the suggested percent of income that one should save when following the “PYF” principle?
A: 2%
B:
10%
C: 20%
D:
50%
10%
#4 If you have $50 in savings for one year at an interest rate of 7 percent, how much interest will you earn at the end of the year?
A: $.35
B:
$3.50
C: $35.00
D:
$7
$3.50
#5 If you have an 8-percent compound interest rate on your savings of $1,000, how many years will it take for these savings to reach $2,000?
A: 7.2 years
B:
8 years
C: 9 years
D:
10 years
9 years
#6 Which of the following is an example of investing?
A: Buying a pop and
candy bar
B:
Saving your allowance to buy a DVD.
C: Putting money in a box
under your bed.
D:
Buying a U.S. Savings Bond
Buying a U.S. Savings Bond
#7 What are the three rules of building wealth over the long term?
A: Start early, buy and
hold, and diversify
B:
Seek liquidity, buy on margin, and sell short
C: often, and trade
comfortably
Trade early, trade
D:
Buy aggressively, short cover, and borrow
Start early, buy and hold, and diversify
#8 Which of the following is an incentive that encourages people to save money?
A: Earning interest on
money saved.
B:
The marginal cost of saving
C: The opportunity cost
of saving
D: could be purchased
now.
Giving up things that
Earning Interest on Money Saved
#9 If you have $100 in savings for one year at an interest rate of 5 percent, how much Interest will you earn at the end of the year?
A: $5
B:
$4
C: $3
D:
$2
$5
#10 The formula for calculating simple interest is: Interest =
A: Loan X Rate X Dividend
B:
Principal X Rate X Yield
C: Rate X Time X Yield
D:
Principal X Rate X Time
Interest =
Principal X Rate X Time
#11 Which of the following is NOT an investment?
A: Buying 100 shares of
Disney
Buying a bond from B: Coca-cola, which promises to pay back the money plus interest
C: by the government of
Mexico.
Buying a bond issued
D:
Buying a hot dog at the baseball game.
Buying a hot dog at the baseball game.
#12 One way people can earn money from stocks is by
A: Buying stock from an
investment banker.
Selling the stock for a B: lower price than the price they paid for the stock.
Selling the stock for a C: higher price than the price they paid for the stock.
Selling the stock for the same price as the D: price they paid for the stock.
Selling the stock for a higher price than the price they paid for the stock.
#13 Which of the following statements about mutual funds is true?
All mutual funds are A: the same.
Mutual funds allow B: investors to spread risk among several stocks and bonds.
Load funds do not charge C: a sales commission but invest in lower-quality stocks.
D: not charge
Many mutual funds do management fees.
Mutual funds allow investors to spread risk among several stocks and bonds.
#14 What are the five steps used in the decision-making process?
A: choices, evaluation,
decision
Plan, alternatives,
B: criteria, evaluation,
decision
Plan, alternatives
C: conditions, execution,
decision
Problem, action,
D:
Problem, alternatives, criteria, evaluation, decision
Problem, alternatives, criteria, evaluation, decision
#15 Josh is stressing out about making an investment that involves high risks. Which one of the following is his safest investment option?
A: Savings Account
B:
Putting his money in a box under his bed
C: Mutual Fund
D:
Stocks
Savings Account
Great Job!!!!
Thank you for playing!