Personal finance quizzes

[jIM_Ohio]

I am looking for some good personal finance quizzes or quiz questions.

Examples:

When interest rates go up, what happens to
a) bond mutual funds you own
b) individual bonds you own
c) savings accounts
--
Two companies issue bonds on the same day. Company A is in danger of going bankrupt and needs the money badly. Company B is stable and is using the money to fund construction of a new plant.

Which bond pays a higher interest rate to the investor and why?
--
Two people start a job at age 25. Person A invests $5000 per year into his 401k every year. Person B waits and does not start investing until age 35. At age 35 person B invests $10,000 per year. Both plan to retire at age 65.

Assuming both person A and B choose the same investment, which has more money at age 45? 55? 65? Why?
--

If you have links to any quizzes like this, or can post similar questions here which I can add to a word doc I am creating, please do so.

As I prepare people's taxes I am going to have the quiz on my desk with a seperate answer key I give after preparing the return.

[jIM_Ohio]

Here is the quiz thus far

1) When interest rates go up, what happens to
a) bond mutual funds you own
b) individual bonds you own
c) savings accounts

2) Two companies issue bonds on the same day. Company A is in danger of going bankrupt and needs the money badly. Company B is stable and is using the money to fund construction of a new plant.
Which bond pays a higher interest rate to the investor and why?

3) Two people start a job at age 25. Person A invests $5000 per year into his 401k every year. Person B waits and does not start investing until age 35. At age 35 person B invests $10,000 per year. Both plan to retire at age 65.
Assuming both person A and B choose the same investment, which has more money at age 45? 55? 65? Why?

4) You have saved $25,000 for a down payment on a house. You plan to buy within the next year. Which of the following is the SAFEST place to keep your money?
a. Under your mattress
b. Stocks
c. Bonds
d. Bank savings account

5) What will help most toward building a good credit history -- or repairing a bad one?
a. Pay bills on time and keep credit-card balances low
b. Pay minimums on all cards and keep high balances
c. Open new accounts and Pay minimums on existing accounts
d. Pay all accounts in full and close accounts once balance is zero

6) Which investment has historically had the highest growth over extended periods of time?
a. Real Estate
b. Stocks
c. Gold
d. Bonds
e. Savings Accounts

7) If you pay the monthly "minimum payment" on your credit card account, you will pay off the entire balance (assuming no additional charges) in less than ten years.
a. True
b. False

8) Every worker pays a social security tax- what is the rate of this tax?
a. 4.0 %
b. 5.1%
c. 6.2%
d. 7.3%
e. 8.4%

9) Every employer pays a portion of social security on employee’s behalf- what is the percent the employer pays?
a. 4.0 %
b. 5.1%
c. 6.2%
d. 7.3%
e. 8.4%

10) Self employed people are exempt from the employer’s portion of Social Security payroll tax.
a. True
b. False

11) A person works for an employer which has a 401k plan. The 401k plan matches 50% of the first 10% of contributions. Which statement(s) below are true?
a. If a person contributes 10%, the overall contribution is 15%
b. If a person contributes 10%, the overall contribution is 60%
c. If a the total contribution was $10,000 including the match, the investment could lose 33% (be worth $6666) and the employee has not lost any of their own money.
d. If the total contribution was $10,000, including the match, the investment could lose $4999 (be worth $5001) and the employee has not lost any of their own money.
e. Taxes are paid on the employee contributions
f. Taxes are paid on the employer match
g. Taxes are not paid on the employee contributions
h. Taxes are not paid on the employer match

12) Mortgage A and mortgage B are taken by two different people on the same day. Person A has a 15 year fixed mortgage. Person B has a 30 year fixed mortgage. Both have the same employer, same salary and same credit score. They are buying similar houses in the same neighborhood with identical down payments of 20%.
a. Which loan has the lowest payment?
b. Which loan has the lowest interest rate?
c. Which loan adjusts payment every year?
d. If person B (30 year fixed) makes the same payment as person A (15 year fixed) what would happen?
e. If person A (15 year fixed) makes the same payment as person A (30 year fixed) what would happen?
f. If the house increases in value what happens to the loan of Person A? Person B?
g. If the house decreases in value, what happens to the loan of Person A? Person B?
h. Which loan pays more interest to the bank?

13) Identify which characteristics below apply to a Roth IRA or Traditional IRA:
a. Pay taxes on contributions
b. Pay taxes on distributions
c. Gains are not taxed until withdraw

14) Match the investment type below with its definition:
a. Stock
b. Government Bond
c. Corporate Bond
d. Mortgage Security
e. CD
f. Annuity
An income stream for a given amount of time; Debt issued from real estate; Debt issued by a company; Debt issued from Treasury department; Ownership in a company, Deposit guaranteed by US government

15) Who will give the most accurate and objective advice on financial matters?
a. CPA
b. CFP
c. Tax preparation company
d. Insurance agent

16) If a person wants to advise or sell someone to buy a specific mutual fund, what license do they need?
a. CFP
b. CPA
c. Series 6
d. Series 7
e. LAH

17) If a person wants to advise or sell someone to buy a specific insurance product, what license do they need?
a. CFP
b. CPA
c. Series 6
d. Series 7
e. LAH

18) What is a CFP?

[maat55]

Here is the quiz thus far

1a depends on the type of fund.
b looses value
c earns interest

2a depends on it rating
b most likely a AAA rated bond earns less

3 A, time value of compound interest.

4 d
5 a
6 b
7 b
8 c
9 c
10 b
11 a,e,h
12 a 30
b 15
c depends
d pays off the same
e foreclosure
f nothing
g nothing
h 30

13 a roth
b trad.
c roth

14 Stock- ownership in company
GB- debt by gov
CB- debt by company
MS- debt by real estate
CD- deposit guarateed by gov
Annuity- income stream

15 b
16 a
17 a
18 Certified financial planner

[sweeps]

I am looking for some good personal finance quizzes or quiz questions.

Tons of questions:
Ask Investopedia: Investing Basics
Ask Investopedia: Bonds & Fixed Income
Ask Investopedia: Investing Basics
Investopedia.com: Ask Investopedia

[jIM_Ohio]

1a depends on the type of fund.
b looses value
c earns interest

2a depends on it rating
b most likely a AAA rated bond earns less

3 A, time value of compound interest.

4 d
5 a
6 b
7 b

8 c
9 c
10 b

11 a,e,h

12 a 30
b 15
c depends
d pays off the same
e foreclosure
f nothing
g nothing
h 30

13 a roth
b trad.
c roth

14 Stock- ownership in company
GB- debt by gov
CB- debt by company
MS- debt by real estate
CD- deposit guarateed by gov
Annuity- income stream

15 b
16 a
17 a
18 Certified financial planner

Here are my replies:
1a loses value
1b nothing (or loses value, but still pays same interest as before)

2 Bond of company B pays more interest in open market because it is a higher credit risk.

11 a c e h
you could lose 33 percent in market an match still has person at break even.

12 c neither- both loans keep same payment for fixe life of loan.

13 c should have been both, but I worded it wrong.

16 c series 6 unless you know something I do not.

18- CFP will probably have an LAH and series 6 and know taxes- making their advice able to emcompass more if they are not selling something.

[Daylily]

I don't think 8 and 9 are true. Not every worker pays into social security.
My BIL works for the railroad and I believe he has something else.
Also, I think certain teachers groups and possibly other public employees in my state don't pay into social security.

[maat55]

Hey teacher, I was in a hurry, DW wanted potatos peeled.