NAME_____________________________________________________
FINANCIAL TRIVIA- INTERNET RESEARCH
(Each Question= 2 points each)
We will grade as a class and go over this near the end of class.
1. What are the 2 names of the stock market in New York?
NYSE (NEW YORK STOCK EXCHANGE), WALL STREET, or NASDAQ
2. What presidents are on these dollar bills?
$1__Washington_____________________ $5_LINCOLN______________________
$20 JACKSON______________________ $ 100_____BEN FRANKLIN______________
3. What are the 2 main ways banks make money?
____INTEREST ON LOANS (PROFIT MARGIN) & SERVICE FEES_______________
4. What presidents are on these coins?
Penny____LINCOLN_______________________
Nickel____JEFFERSON_______________________
Quarter____WASHINGTON______________________
5. 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)
$10,000 x 1.02
2 years if the Annual Percentage Rate is 2%___$10, 404____________________
$10,200 x 1.02
6. What do you think the average interest rate is for a mortgage loan
____________30 year fixed = 4-5 %__________________________
For a new car loan______Average 5-8%_________________
For a used car loan__________AVERAGE 6-10_____________
7. Would a new car loan or a used car loan get a better rate of interest and why?
NEW CAR> COLLATERAL IS AT A HIGHER VALUE, EASIER TO LIQUIDATE
8. What is a bank CD? TIME DEPOSIT WHERE YOU LOAN MONEY TO THE BANK FOR A SET
AMOUNT OF TIME & YOU EARN INTEREST.
NAME_____________________________________________________
9. Who controls the interest rates? FEDERAL RESERVES & BANKS
10. If interest rates are LOW, does this help or hurt the economy and why?
HELP, IT ENCOURAGES PEOPLE TO BORROW $ THEREFORE THEY SPEND $ WHICH HELPS THE ECONOMY
11. What is financial credit and why is it necessary to have “Good” financial credit?
CREDIT SHOW PAST FINANCIAL RESPONSIBILITY, HELPS CREDITORS DETERMINE IF THEY WILL LOAN A PERSON
MONEY, YOU MUST HAVE GOOD CREDIT TO GET A LOAN WITH A GOOD INTEREST RATE.
12. What are the 3 main credit bureau’s ?
EQUIFAX, EXPERIAN (IN ALLEN), TRANSUNION
13. What is the Dow Jones Industrial Average, list 3 companies in it?
TOP 30 US COMPANIES, EXAMPLE: MICROSOFT, EXXONMOBIL, WALMART
14. What is the Federal Reserve System and what do they do?
THE REGULATORY BANK SYSTEM OF THE US, REGULATES OTHER MEMBER BANKS, THEY ALSO
CONTROL THE INTEREST RATES
15. 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 shares1000_ X current stock price__$46___ + brokerage fee =_46,025_____ Total Cost
16. WHAT IF THE STOCK PRICE GOES UP TO $100 a share, I sell it, how much $ have I made?
`
1000 x $100 = $100,000-$46,025= ABOUT $53,975