Quiz: Finance Knowledge Quiz- the path to $1 Million Dollars

1

What defines a fixed rate mortgage?
- The fact that my monthly payment doesn't vary from month to month
- The fact that the interest rate won't change over the life of the mortgage
- The fact that I can pay off the mortgage for a fixed fee
- The fact that the rate can help fix my financial problems
2

If you "short" a stock what has to happen for you to make money
- The stock has to go up
- The stock has to go down
- You have to hold the stock for a "short" minimum amount of time
- The company has to be acquired by another company
3

If you buy a "call option" on a stock, what are you buying
- The right to have your stock broker call you if there is a major announcement about a stock you own
- The right to defer taxes on any gain from the stock until you "call" the gain
- The right to sell the stock at a future date at a fixed price
- The right to buy the stock at a future date at a fixed price
4

If you own a bond and interest rates go up, almost always what happens
- The value of your bond goes down
- The value of your bond goes up
- The value of your bond is unaffected
- It depends what other stocks you also hold
5

Why would you NOT put money in a 401k or IRA today
- You don't have to pay taxes on the money until you take it out
- You can save the money and have it grow tax free until you take it out
- The money is very hard for creditors to get and helps secure your retirement
- You only have to pay a small up front fee to the IRS to be eligable for bigger gains later
6

What is true about your mortgage payment on your house
- You can deduct the part of the payment that is "principal"
- You can deduct the part of the payment that is "interest"
- You can deduct the whole payment
- None of it is deductible
7

The best way to make enough money to retire well is to:
- Get lucky and invest in a Microsoft or Google early on
- Save as much as you can as early as you can and reinvest it smartly
- Day trade on stocks you know well
- Buy gold and other commodities and hold for the long run
8

What are "real dollars"
- Euros converted into US Dollars
- The total amount of money in circulation
- The purchasing power of your money adjusted for price changes and inflation over time
- The total amount of income you must declare to the IRS to pay taxes on
9

If you keep all your savings in an interest bearing account what will happen over time
- The purchasing power of your savings will go up because of inflation
- The purchasing power of your savings will go down because of inflation
- The purchasing power of your savings will go up if interest rates go up
- The purchasing power of your savings will go down if interest rates go down
10

Does "term" life insurance build equity
- Yes
- No
11

Everyone is different, and so are their answers. What is your:
- Gender
- Birth Year

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Finance Knowledge Quiz- the path to $1 Million Dollars

What defines a fixed rate mortgage?

If you "short" a stock what has to happen for you to make money

If you buy a "call option" on a stock, what are you buying

If you own a bond and interest rates go up, almost always what happens

Why would you NOT put money in a 401k or IRA today

What is true about your mortgage payment on your house

The best way to make enough money to retire well is to:

What are "real dollars"

If you keep all your savings in an interest bearing account what will happen over time

Does "term" life insurance build equity

Everyone is different, and so are their answers. What is your:

Post This Quiz

Rating

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