| Coverage : The Money Management Quiz is designed to test your knowledge about various aspects of managing your money. |
| 1. | Money management can mean which of the following? |
| a. | | Gaining greater control over income and expenditures |
| b. | | Analyzing your costs and income |
| c. | | How much risk a decision maker should take in situations where uncertainty is present. |
| d. | | All of the above |
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| 2. | Disposable income is gross income minus income tax on that income. |
| a. | | True |
| b. | | False |
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| 3. | Your income after subtracting taxes and normal expenses (such as rent or mortgage, food, car payments, and insurance) to maintain a certain standard of living is referred to as: |
| a. | | Investment Income |
| b. | | Interest Income |
| c. | | Discretionary Income |
| d. | | Passive Income |
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| 4. | Planning your personal expenses based on your revenue inflows is called: |
| a. | | Tax Planning |
| b. | | Budgeting |
| c. | | Investing |
| d. | | Financing |
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| 5. | As a general rule, which of the following statements is true? |
| a. | | The riskier an investment, the higher potential return. |
| b. | | Junk bonds are a safe investment. |
| c. | | Individual Stocks are a safer investment than mutual funds. |
| d. | | Bonds are referred to as an equity security. |
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| 6. | Which is the safest form of investing extra money that you have? |
| a. | | Individual Stocks |
| b. | | Bank interest |
| c. | | Mutual Funds |
| d. | | Hedge Funds |
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| 7. | Investors must pay tax on capital gains from most mutual funds, whether they sell the funds or not. |
| a. | | True |
| b. | | False |
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| 8. | The FDIC insures up to how much per depositor? |
| a. | | $1,000 |
| b. | | $10,000 |
| c. | | $100,000 |
| d. | | $1,000,000 |
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| 9. | A professionally-managed form of collective investments that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities is referred to as: |
| a. | | Mutual Funds |
| b. | | Real Estate Investment Trust |
| c. | | Investment Club |
| d. | | Diversification Funds |
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| 10. | Bonds that are often tax-exempt are referred to as: |
| a. | | Preferred Bonds |
| b. | | Corporate Bonds |
| c. | | Catastrophe Bonds |
| d. | | Municipal Bonds |
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| 11. | As a general rule, common stock carries voting rights.
Common stock is usually a secure investment: |
| a. | | True
True |
| b. | | False
Answer:a
False |
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