NAME____Baylor Worman______- ALL BUSINESS CLASSES (DUNCAN)
*SAVE TO YOUR CLASS FOLDER THAT WE CREATED LAST CLASS
FINANCIAL/BUSINESS TRIVIA- INTERNET RESEARCH
(Each Question= 2 points each)
1. What are the 2 names of the stock market in New York?
______New York Stock Exchange and Wall street______
2. What presidents are on these dollar bills? (which one is not a president)
$1______George Washington_____ $5____Abe Licoln______
$20_Andrew Jackson_____ $100____Ben Franklin (non president)______
3. What are the 2 main ways banks make money?
______interest______interchange fees______
4. If I have $10,000 in a savings account how much would I have at the end of 1 year if the Annual Percentage Rate is 2% ____$10,200______
(APR is the percentage rate per year, compounded annually)
Principle x Rate x Time 10,000 x .02 x 1= 10,200
2 years if the Annual Percentage Rate is 2%____$10,404______
10,200 x .02 x 1
5. What is a mortgage loan and what is the average current interest rate on a 30 year fixed loan? Around 4 %- a loan that is secured by property or real estate (house)
What is the average current interest rate for a new car loan? ____AROUND 4-5 %
Average current interest rate for a used car_____5% +______
6. Would a new car loan or a used car loan get a better rate of interest and why?
Used Car Borrowers Are Riskier, the collateral (the care) is worth less.
7. Who controls the interest rates?
Federal Reserve Board (FEDS)
Federal Open Market Committee
8. If interest rates are LOW, does this help or hurt the economy and why?
When consumers pay less in interest, this gives them more money to spend, which can create a domino effect of increased spending throughout the economy.
9. What is financial credit and why is it necessary to have “Good” financial credit?
Credit is a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some date in the future, generally with interest. It is necessary to have good financial credit in order to be able to make purchases and to gain bank trust.
10. What are the 3 main credit bureau’s ?
Equifax , Experian, TransUnion
11. What is the Dow Jones Industrial Average, list 3 companies in it?
The Dow Jones Industrial Average (DJIA) is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange (NYSE) and the NASDAQ. The DJIA was invented by Charles Dow back in 1896. Walmart, Nike, Disney.
12. What is the Federal Reserve System and what do they do?
The Board of Governors, an agency of the federal government that reports to and is directly accountable to Congress, provides general guidance for the System and oversees the 12 Reserve Banks.
13. If I buy 1000 shares of Microsoft right now, how much will it cost me assuming I pay the broker $25 to place the trade?
# of shares__1000___ X current stock price__72.41_____ + brokerage fee =_$72,435______Total Cost
14. WHAT IF THE STOCK PRICE GOES UP TO $100 a share, I sell it, how much $ have I made?
$100,000 - $72,435 = $27,565