This short quiz will provide you with a general idea of your financial IQ and whether you should potentially speak with an expert in the field!
I took this test at a meeting this morning and my score is available upon request.
Financial Literacy Quiz
1) Stock prices are primarily the result of
a) Level of uncertainty b) Capital structure c) Corporate profitability and the intersection of supply and demand of stocks d) Demographic changes in the population
2) If John and Jane Doe, in today’s market, wanted to take $60,000 per year from their IRA’s from only dividends and interest, without withdrawing any principal, their combined IRA assets should be about
a) $180,000 b) $1,000,000 c) $400,000 d) $600,000
3) Household expenses peak at age 45 and then falls in every category except
a) Entertainment spending b) Home improvement c) Healthcare d) Clothing
4) Jonathan decides to invest $500/month over the next 20-years in his IRA and expects to average a 7% annual return. If he is correct, his IRA should be worth about
a) $72,000 b) $80,400 c) $3,000,000 d) $260,000
5) An increase from 5% to 8% in the interest rates charged by banks would most likely encourage
a) Business to invest b) People to purchase housing c) People to save money d) People to increase borrowing
6) When interest rates rise, the market value of bonds will typically
a) Remain the same b) Increase c) Fluctuate randomly d) Decrease
7) If the price of beef doubled and the price of poultry remained the same, people would most likely buy
a) More poultry and less beef b) Less poultry and more beef c) The same amount of poultry and beef d) Go on a diet
8) The biggest financial concern or fear that many people over 50 years of age have is
a) Missing the next bull market b) Leaving a nice legacy to their children or grandchildren c) Outliving their money d) Failing a financial literacy quiz
9) In the United States, who determines what goods and services should be produced?
a) Producers and government b) Consumers and government c) Producers, consumers and government d) The IRS
10) When a private company goes public by a formal stock offering, it is known as
a) A UIT b) A debenture c) An IPO d) An LBO
11) A retirement account that allows the owner to make tax-free withdrawals after age 59 1/2 is known as a
a) Obamacare account b) Traditional IRA c) Roth IRA d) 403b account
12) When the federal government’s expenditures for a year are greater than its revenue for that year, the difference is known as
a) The national debt b) A budget deficit c) A budget surplus d) A tax levy
13) Which of the following are likely to be helped by inflation?
a) People living on a fixed income b) Banks that loaned money at a fixed rate of interest c) People who borrowed money at a fixed rate of interest d) College students
14) Japan, in early 2014, raised its national sales tax from 5% to 8%. This was a percentage increase of
a) 50% b) 80% c) 3% d) 60%
15) A slowdown in the rate of inflation is known as
a) Stagflation b) Deflation c) Disinflation d) Reflation
16) “They were the wealthiest generation because they planned ahead, they were risk averse, they played by the rules and the system worked for them.” This economic viewpoint best describes the
a) Boomer generation b) Greatest generation c) Generation X d) Silent generation
17) The study of how a society allocates its scarce resources is known as __________.
If you would like to speak with the financial advisor who prepared this quiz, contact Hallmark Abstract by phone (516.741.4723) or by email (firstname.lastname@example.org) and we will make the introduction.
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Written by Michael Haltman, President of Hallmark Abstract Service, New York.
HAS is a provider of title insurance in New York State for residential and commercial real estate transactions.
And, for anyone either buying a property or refinancing, remember that although your attorney will likely recommend a title insurance provider you always have the right to choose your own (click here to learn more)!
If you have any questions you can reach Michael by email at email@example.com.Google+