Mincing Words About Money Quiz

Question 1

In May 2010, the stock market fell 1,000 points in a single day. What term was used to describe this event?

A. Disastrous dive
B. Financial freefall
C. Flash crash
D. Precipitous plunge

Question 2

Investments that are based on the underlying value of an asset, such as futures, options and swaps are called what?

A. Commodities
B. Puts
C. Derivatives
D. Straddles

Question 3

What organization is the largest non-governmental regulator of U.S. securities firms?


Question 4

What is the market value of a “small company stock?”

A. Between $250 million and $1 billion
B. Under $2 billion
C. Under $100 million
D. Between $100 million and $250 million

Question 5

A mutual fund that attempts to mirror the performance of a broad category, such as emerging markets or REITS, is called what?

A. Targeted funds
B. Index funds
C. Focused funds
D. Collective funds

Question 6

Which type of bonds is typically exempt from federal taxes and frequently state taxes as well?

A. Junk bonds
B. Corporate bonds
C. Government bonds
D. Municipal bonds

Question 7

How is a company’s market capitalization determined?

A. Share price times number of shares times earnings per share
B. Share price times the number of outstanding shares
C. Total assets less total liabilities
D. Number of shares times earnings per share

Question 8

Acme MegaCorp has a market cap of $5 billion. How is it categorized according to capitalization?

A. Micro-cap
B. Small-cap
C. Large-cap
D. Mid-cap

Question 9

Coverdell and 529 plans encourage saving for what?

A. Retirement
B. Mortgage down payment
C. College
D. Medical emergencies

Question 10

The American Academy of Ophthalmology offers free eye exams for Americans over the age of 65 that do not belong to either of these groups.

A. VA or an HMO
B. Blue Cross Blue Shield or an HMO
C. VA or Blue Cross Blue Shield
D. The American Academy of Ophthalmology or the VA