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THE SAVINGS GAME, QUESTIONS AND ANSWERS

Round 1

Question 1: What is the first step you should take if you want to lower your credit card debt?
A: Pay the minimum amount due.
B: Wait until the interest rate is lowered.
C: Pay more than the minimum amount due.
D: Call a broker and invest your savings in an IRA.
Answer - C

Question 2: What does APR stand for?
A: Average Payment Rate.
B: Annual Percentage Rate.
C: Animal Protection Rights.
D: Your Payment Is Due in April.
Answer - B

Question 3: A credit card balance is at $5000. The interest rate is 18%. How much is the finance charge for the month providing you don't use the card?
A: $75
B: $900
C: $50
D: $100
Answer - A


Round 2

Question 1: Einstein once said the most powerful force in the universe is?
A: The Stock Market
B: Splitting Atoms
C: The Gross National Product
D: Compound Interest
Answer - D

Question 2: With a ROTH IRA at what age are you required to begin taking your money out?
A: 65 and 1/2
B: 67
C: 70 and 1/2
D: You never have to take it out.
Answer - D

Question 3: Your Social Security Benefits Statement is a great way for you to
A: Plan your kids college education.
B: Plan for your next vacation.
C: Plan your retirement savings.
D: Plan on how much money you can borrow.
Answer - C

Round 3

Question 1: A Money Market Account is…
A: A type of IRA
B: A type of Mutual Fund
C: A type of Treasury Bond
D: A type of Certificate of Deposit
Answer - B

Question 2: When it comes to stocks a P/E number is the ratio between…
A: Price and Earnings
B: Product and Environment
C: Purchases and Economy
D: Percentage and Earnings
Answer - A

Question 3: Asset Allocation is…
A: Different kinds of large business stocks.
B: Spreading your savings over different investments.
C: The amount of money in your savings account.
D: Your yearly living expenses.
Answer - B

Round 4

Question 1: When selecting a broker make sure..
A: They will invest based upon your objectives.
B: They are registered.
C: You feel comfortable and can sleep at night.
D: All of the above
Answer - D

Question 2: What is the downside to investing on-line?
A: Paying a low commission.
B: Investing at night.
C: Trading too frequently.
D: Having as much information as the pros.
Answer - C

Question 3: How much tax do you have to pay the government on long term Capital Gains?
A: 20%
B: 33%
C: 45%
D: What ever you current tax bracket is.
Answer - A
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