QUIZ BOWL #1
1. (6) Which of the following is most likely to appreciate over time: a car, a computer,
or a parcel of land?
(parcel of land)
2. (8) To lower your debt, it is usually best to start paying off those loans which have the highest what?
(interest rates)
3. (10) The chance of a monetary loss from some type of event is called what?
(risk)
4. (7) Checking, savings, or money market: which type of account tends to pay the highest interest?
(money market)
5. (9) When reconciling a checking account, how should one account for the value of outstanding checks with respect to the bank’s balance statement?
(subtract them)
6. (6) If you have a negative net worth, your liabilities exceed the value of your what?
(assets)
7. (1) If Tom sells ten shares of Google stock to Jerry for $50 per share, who expects to gain from this exchange?
(both of them)
8. (4) Without any change in income, any increase in expenses for a budgeted item means you would have to do what to keep your budget balanced?
(lower expenses for some other item)
9. (2) If you are paid based on a percentage of the sales you make you are said to be working for what?
(commissions)
10. (5) If you have monthly expenses of $2000 and wish to keep an emergency fund equal to one quarter’s worth of expenses, how large should your fund be?
($6000)
11. (10) What type of natural damage is not typically covered by standard homeowner’s insurance?
(flood)
12. (3) If your property taxes are $2000 and you are in the 20% income tax bracket, what is the after-tax cost to you of the property tax?($1600)
13. (1) Since many buyers and sellers can easily move in and out of the stock market, the market is considered to be highly what?
(competitive)
14. (7) Buying an “odd lot” means buying less than how many shares of a stock?
(100)
15. (6) The three basic investment rules to build wealth are start early, stay invested, and what?
(diversify)
16. (4) How much should you plan to budget each month for a $2400 annual vacation?
($200)
17. (9) Banks pay premiums to what agency to insure their depositors’ accounts?
(FDIC/Federal Deposit Insurance Corporation)
18. (3) Which of the following retirement investments has no tax advantages: IRAs, gold, or 401(k)s?
(gold)
19. (8) Which of the following is an example of non-revolving credit: a VISA credit card, a student loan, or a Kohl’s credit card?
(a student loan)
20. (7) Which of the following never earns a taxable capital gain: a collectible, a car, a money-market account?
(money-market account)
21. (5) If $1000is placed in an account paying 10% interest per year compounded semi-annually, how much interest would be earned in one year?
($52.50)
22. (3) What percent of their wages areworkers paying in 2012 to support Social Security?
(4.2%)
23. (2) Education, healthy-living, training, and practice are investments in what?
(human capital)
24. (8) Suppose you have enough money to buy a car without borrowing. Borrowing might still be the better way to purchase the car if the loan rate is less than what?
(the rate of return your money is earning)
25. (5) A professional estimate of the market value of an asset is called a what?
(appraisal)
QUIZ BOWL #2
1. (4) “Managing one’s cash flows” is another way of saying what?
(budgeting)
2. (9) How many Dow Jones stocks are represented in the S&P 500 Index?
(30)
3. (3) A federal sales tax on some good is better known as what type of tax?
(excise)
4. (7) A bond that pays all its interest and principal at the bond’s maturity date is what kind of bond?
(zero-coupon)
5. (6) The current market value of a house minus the remaining principal on the
loan to purchase it equals what?
(the owner’s equity)
6. (7) What does it mean when a mutual fund is described as being “no-load”?
(there are no fees or transaction costs associated with it)
7. (5) If a lender requires a 20% down payment on all mortgages, how much do you need to save to get a loan for a $150,000 house?
($30,000)
8. (3) With respect to taxes, which of the following would be most beneficial to you: a $100 deduction, a $100 credit, or a $100 exemption?
(a $100 credit)
9. (1) If a savings account pays 1% annual interest and the rate of inflation is 3%, what is the real rate of return on this account?
(negative 2%)
10. (9) The Federal Reserve lowers interest rates in the economy by increasing the growth rate of what?
(the money supply)
11. (9) A request that a bank not cash or process a check you have written is called a what?
(‘stop-payment” order)
12. (4) Give an example of a fixed monthly expense.
(mortgage/auto loan payment/cable/internet)
13. (1) From an economic standpoint, what role should the $500 you spent repairing your car three months ago play in your decision today to sell it or not?
(none, sunk cost)
14. (2) People who start their own businesses are called what?
(entrepreneurs)
15. (10) What type of insurance protects your earning power should you become injured?
(disability)
16. (2) How many more paychecks would you typically receive in a year if you were paid every two weeks instead of bi-monthly?
(2)
17. (10) What part of your insurance policy represents the amount you are willing to “self-insure” or pay yourself?
(the deductible)
18. (8) What do the letters “APR” stand for?
(annual percentage rate)
19. (8) What bond rating would indicate that a corporation is very likely to default on its bond payments?
(C)
20. (5) At an interest rate of 8% per year, about how many years would it take to quadruple the value of an investment?
(18 years)
21. (5) What is the principal opportunity cost of saving?
(spending on/enjoying less goods and services today)
22. (8) What is a secured loan secured with?
(collateral/valuable assets)
23. (7) Dividend reinvestment plans pay out dividends not with cash, but with what?
(additional shares of stock)
24. (3) What is the highest marginal tax bracket for the U.S. federal personal income tax?
(35%)
25. (1) What is offered by consumer organizations such as Consumer Reports, the Better Business Bureau, and Angie’s List?
(unbiased consumer information about products and businesses)
QUIZ BOWL #3
1. (8) The length of time you have before you start accumulating interest on your credit card balance is called what?
(grace period)
2. (10) Which of the following benefits you: an insurance deductible, a tax deduction, or a debt?
(a tax deduction)
3. (7) Rank the following assets from most risky to least risky: U.S. Savings bonds, Bbb corporate bonds, commodities.
(commodities, Bbb corporate bonds, U.S. Savings bonds)
4. (8) Which form of bankruptcy allows you to erase most of your debt?
(Chapter 7)
5. (3) What federal tax form tells your employer how much to withhold in income taxes from your gross income?
(W4)
6. (4) If you budget 25% of your monthly take-home pay of $2000 for food, how much can you spend on food each month? ($500)
7. (8) If Max’s March credit card statement says he owes $320and he pays the minimum payment of $20, what will his April statement say he owes if he buys nothing else on credit and the yearly interest rate on his account is 24%?
($306)
8. (3) What is another, two-word way to say “take-home pay”?
(net income)
9. (2) Which of the following is an advantage of being an entrepreneur: guaranteed success, being your own boss, or a regular paycheck?
(being your own boss)
10. (10) What is the payment you make for insurance protection called?
(premium)
11. (4) Which of the following would be considered an unexpected expense: mortgage payment, property tax, or appliance repair?
(appliance repair)
12. (1) In the decision-making process on which television to buy price, screen-size, length of warranty, 3D or not, and manufacturer reputation would be examples of what?
(criterion)
13. (6) If the mortgage balance on a home purchased for $150,000 is $60,000 and the house has a current market value of $180,000, what is the amount the owner’s equity?
($120,000)
14. (6) What is the numerical name of the most popular form of voluntary, employer-sponsored retirement savings plans?
(401(k))
15. (1) What is the most-commonly used measure for cost-of-living changes?
(Consumer Price Index)
16. (5) Saving now is a choice to spend your income on what?
(goods and services in the future)
17. (2) Give an example of a fringe benefit provided by an employer.
(health insurance, sick pay, vacation days, pension/401(k) plan, parking space, etc.)
18. (6) Most financial planners advise relatively young people as opposed to older people to keep which of the following type of investments: growth, income, or risk-free?
(growth)
19. (3) What is the current general sales tax rate in Minnesota?
(6.875%)
20. (7) Rank the following from least to most liquid: gold stocks, gold coins, and cash.
(gold coins, gold stocks, cash)
21. (10) Home, auto , or life--for which type of insurance is liability not a consideration?
(life)
22. (4) What are the two basic ways one can respond to an unanticipated expense in order to “stay within one’s budget”?
(reduce some other expense/increase income)
23. (9) A share draft accountat a credit union is similar to what kind of account at a bank?
(checking account)
24. (5) Quarterly, monthly, or daily: which type of compounding would give you the lowest effective yield given the same annual interest rate?
(quarterly)
25. (9) What do the letters “PIN” stand for?
(personal identification number)
QUIZ BOWL #4
1. (9) When purchasing something via the internet, what does the “s” in “https” portion of the website refer to?
(secure)
2. (8) While declaring bankruptcy may erase many of your debts, a major cost in terms of your future credit is what?
(harder and/or more expensive to obtain)
3. (2) Skills training is supplied by what type of schools?
(trade/technical)
4. (10) When applying for auto insurance you will be asked for your VIN: what is it?
(vehicle identification number)
5. (1) If you earn 1% on a savings account and face a 20% income tax rate, what is the effective rate of return on the account?
(0.8%)
6. (3) What two major programs are supported with FICA “contributions”?
(Social Security and Medicare)
7. (3) What was the exemption amount for each eligible person in the 2011 federal personal income tax code?
($3700)
8. (4) If Roslyn’s car gets 25 miles per gallon and the price of gas is $4 per gallon, how much should she budget for the fuel cost for a trip of 500 miles?
($80)
9. (2) Part-time jobs, voluntary work, and internships are ways to gain what that employer’s look for in hiring new workers?
(work experience)
10. (6) How does inflation affect the size of one’s desired retirement “nest egg”?
(the greater the anticipated inflation, the greater the size of the nest egg required)
11. (10) If you have 80% hospitalization coverage with a $1 million coverage limit, how much would you have to pay for a $150,000 operation?
($30,000)
12. (5) Earning interest on interest is called what?
(compounding)
13. (5) A household’s saving rate is what divided by what?
(saving per period; income per period)
14. (5) What is the lowest rate of return necessary to double an investment in 6 years?
(12%)
15. (8) Name two of the three largest types of household non-revolving debt?
(auto loans, student loans, credit card loans)
16. (9) A FDIC-insured account is insured up to what amount?
($250,000)
17. (7) Rank the following bonds has the highest expected rate of return: U.S. Savings, Aaa corporate, or Bbb corporate?
(Bbb corporate)
18. (4) “Paying yourself first” means that one of the fixed expenses in your budget is what?
(saving)
19. (1) $100 placed in your dresser is likely to be worth less in a year due to what?
(inflation)
20. (7) What “small-cap” stock index is based on the stocks of 2000 companies?
(Russell 2000)
21. (8) The Fair Isaak Corporation is famous for developing what?
(FICO/credit score)
22. (6) What is the opposite investment strategy of placing all your wealth in one investment instrument?
(diversification)
23. (2) While more education tends to lead to higher income, what are the two principal costs of more education?
(costs of the education itself plus the opportunity cost of lost income)
24. (10) Which of the following added options would likely make your auto insurance premium higher: airbags, anti-theft system, or turbo-charger?
(turbo-charger)
25. (7) What gr-r--reat company’s stock symbol is simply “K”?
(Kellogg)
QUIZ BOWL #5
1. (8) Name two of the “three C’s” that lenders use to determine credit-worthiness.
(character, collateral, and capacity)
2. (7) The strategy of investing in stocks systematically such as $100 every month or quarter is called what?
(dollar-cost averaging)
3. (1) Personal, financial, or economic: what kind of investing is buying a new computer for a business?
(economic)
4. (2) Payments people receive for selling or renting their productive resources is called what?
(income)
5. (3) At income levels below the income cap, are Social Security taxes progressive, proportional or regressive?
(proportional)
6. (3) Give an example of something that can normally be claimed as a tax deduction?
(mortgage interest, contributions, other taxes, medical expenses, job-related expenses, etc.)
7. (1) In buying a new car, what is a possible trade-off of choosing a more fuel-efficient car?
(size, power, safety, etc.)
8. (1) Which of the following has the greatest amount of total outstanding debt: corporations, farms and other small businesses, or state and local governments?
(corporations)
9. (4) Give an example of a variable monthly expense associated with a car.
(gas, oil, wash, repairs, etc.)
10. (8) Why is a mortgage generally considered a better debt than an auto loan?
(houses tend to appreciate in value, while cars tend to depreciate)
11. (9) Money market mutual funds, money market deposit accounts, or money in cash form--which is typically insured by the FDIC?
(money market deposit accounts)
12. (2) Cash, a computer, or math skills: having which of these would be counted as part of a person’s human capital?
(math skills).
13. (10) Color, model year, or weight: which information about your car would an auto insurer be least interested in?
(color)
14. (1) Rank the U.S. dollar, British pound, and European euro from the most valuable tothe least valuable?
(pound, euro, dollar)
15. (6) Becoming vested in a company’s pension plan often requires that you do what?
(work for the company for a minimum amount of years)
16. (10) An insurance policy that covers you from a wide range of possible liabilities is called what type of policy?
(umbrella)
17. (5) John needs to buy two new tires in six months. If each tire is $90, how much does he need to save each month?
($30)
18. (6) If a car purchased today for $20,000 is expected to depreciate 40% over the next four years, what will it be worth then?
($12,000)
19. (3) 15% is the current tax rate on long-term what?
(capital gains)
20. (8) If you have a credit card which charges 18% annual interest, what percent interest would you have to pay each month on your unpaid balance?
(1.5%)
21. (9) What animal popularly represents rising stock prices?
(bull)
22. (5) How many basis points are there in one percentage point?
(100)
23. (10) Which of the following would generally need the most life insurance—a single person, a married couple with children, or a retired couple?
(a married couple with children)
24. (7) Buying which of the following would be considered investing: lottery tickets, gold coins, or groceries?
(gold coins)
25. (3) What is the lowest federal personal tax rate?
(10%)
QUIZ BOWL #6
1. (7) Over periods longer than 20 years, which of the following has had the highest rate of return: stocks, bonds, or savings accounts?
(stocks)
2. (5) If Ed stops smoking one $6-pack of cigarettes each day, how much could he save in April?
($180)
3. (5) What makes starting to save early so advantageous?
(the impact of compounding)
4. (2) What should you research before interviewing with a prospective employer?
(what the company does/expects)
5. (9) What do the letters “EFT” stand for?
(electronic funds transfer)
6. (1) What is the main opportunity cost of choosing not to develop your human capital?
(higher future income/more goods and services in the future)
7. (7) What company parades under the stock symbol “M”?
(Macy’s)
8. (9) Who initially buys the new stock issues of companies?
(investment banks)
9. (10) To increase your wealth requires that you invest, to protect your wealth requires that you do what?
(insure)
10. (10) If a visit to your doctor costs $200 and your medical insurance has a $50 co-pay, how much would the visit cost you?
($50)
11. (3) Corporate, municipal, or savings: which bond’s interest is not subject to federal income taxes?
(municipal)
12. (4) Give an example of a long-run savings goal.
(car, house down payment, retirement, college education, etc.)
13. (5) If your savings grow at 9% per year, then the opportunity cost of buying one car today is how many cars eight years from today if there is no inflation?
(two cars)
14. (2) A well-written what would include a person’s education, work experience, goals, and technical skills?
(resume)
15. (6) Give an example of a personal property asset other than real estate or a car.
(jewelry, HD TV, coins, boat, etc.)
16. (9) If you have a $40 balance in your checking account, write a $50 check for a new video game, and get an overdraft fee of $30, what would your new balance be?
(-$40)
17. (4) Anders considers himself a good money manager because he spends exactly what he makes each month, but what would help him to be an even better money manager?
(saving a little each month)
18. (6) Give an example of both a defined-benefit retirement plan and a defined-contribution retirement plan?
(pension; 401(k))
19. (8) What is the more common four-letter word for an “IOU certificate”?
(bond)
20. (3) Income earned, income spent, or income saved: what is the basis of a sales tax?
(income spent)
21. (7) What would the rate of return on a stock which paid positive dividends over the year, but dropped in price be positive, negative, or zero?
(unknown…it depends)
22. (8) Who wrote the line, “neither a borrower nor lender be; for loan oft loses both itself and friend.”
(William Shakespeare)
23. (3) Progressive, proportional, or regressive: which type of tax tends to increase after-tax income inequality?
(regressive)
24. (1) Which of the following groups is hurt when the value of a U.S. dollar rises: U.S. consumers, U.S. exporters, or investors holding dollar-denominated assets?
(U.S. exporters)
25. (1) The idea that people respond to incentives may be demonstrated by how they respond to sale prices which is to do what?