Who Wants To Be A Millionaire? Instructor Name Personal Finance

What is the “PYF” principle? #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

Which of the following is a stock exchange? #2 Which of the following is a stock exchange? A: NASDAQ B: DJIA C: IPO D: AAA

NASDAQ

What is the suggested percent of income #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%

If you have $50 in savings for one year at an #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: B: $3.50 $.35 C: $35.00 D: $7

$3.50

If you have an 8-percent compound interest #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

is an example of investing? #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

What are the three rules of building wealth #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 Trade early, trade often, and trade comfortably Buy aggressively, short cover, and borrow C: D:

Start early, buy and hold, and diversify

Which of the following is an incentive that #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 Giving up things that could be purchased now. C: The opportunity cost of saving D:

Earning Interest on Money Saved

If you have $100 in savings for one year #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

The formula for calculating #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

Which of the following is #11 Which of the following is NOT an investment? Buying a bond from Coca-cola, which promises to pay back the money plus interest A: Buying 100 shares of Disney B: Buying a bond issued by the government of Mexico. C: D: Buying a hot dog at the baseball game.

Buying a hot dog at the baseball game.

One way people can earn money #12 One way people can earn money from stocks is by Selling the stock for a lower price than the price they paid for the stock. A: Buying stock from an investment banker. B: Selling the stock for the same price as the price they paid for the stock. Selling the stock for a higher price than the price they paid for the stock. C: D:

Selling the stock for a higher price than the price they paid for the stock.

Which of the following statements about mutual funds is true? #13 Which of the following statements about mutual funds is true? Mutual funds allow investors to spread risk among several stocks and bonds. All mutual funds are the same. A: B: Load funds do not charge a sales commission but invest in lower-quality stocks. Many mutual funds do not charge management fees. C: D:

Mutual funds allow investors to spread risk among several stocks and bonds.

What are the five steps used in the decision-making process? #14 What are the five steps used in the decision-making process? Plan, alternatives, choices, evaluation, decision Plan, alternatives criteria, evaluation, decision A: B: Problem, action, conditions, execution, decision Problem, alternatives, criteria, evaluation, decision C: D:

Problem, alternatives, criteria, evaluation, decision

Josh is stressing out about making #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

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