Personal Finance
What is financial capital?
What is money actually earned and saved?
What is the stock market?
A) A place to buy and sell goods
B) A platform for exchanging cryptocurrencies
C) A marketplace for trading ownership in companies
D) A bank for government bonds
What is C?
What causes inflation?
A):People spending money
B): Confidence in the currency that’s it’s stable
C): The central bank issuing the currency
D): Saving money
What is C?
The central bank issuing the currency
Which of the following is not one of the 7 golden rules of investing
A): Listen to your friends
B): Diversify
C): Never stop learning
D): Start Early
What is A?
Don't listen to you friends unless they also do their homework
What does EPS stand for?
A): Earnings-prior-to-saving
B): Earnings-per-share
C): Earnings-per-shareholder
D): Elephants-program-systems
What is B? Earnings - per - share
What is Human Capital?
What is value of a person's labor or work?
What is the average growth rate of the S & P 500 ?
What is 12%
What inflation rate is considered to be needed for the economy to grow at a healthy rate?
A): 0%
B): 2-3%
C): 5%
D): 10%
What is B?
2- 3%
Who is a Super Investor
A): Someone who has a large company
B): Bhava
C): Someone who has lots of money
D): Someone who generates consistent returns
What is D?
Someone who generates consistent returns
note: B is also an acceptable answer
When did the stock market start?
A): Late 17th Century
B): Late 18th Century
C): Early 19th Century
D): Mid 20th Century
What is A? Late 17th century
What is a list of expected income and expenses for a given period of time?
What is a Budget?
What does ROI stand for in finance?
A) Return on Investment
B) Rate of Interest
C) Risk of Inflation
D) Revenue on Investment
What is A): Return on Investment
In what ways does the government enact fiscal policy
A): Asking people to save
B): Cutting and Increasing Taxes
C): Asking the Federal Reserve
D): Increasing the interest rate
What is B):
Cutting and increasing taxes
What is number 1# for 7 Golden Rules
A): Invest in good companies
B): Don’t follow the herd
C): Think long term
D): Put all your eggs in one basket (Tesla)
E): Buy Stonks
What is C?
Think long term
What are the Dow Jones Industrial Average and the S&P 500?
A): Stock Indices
B): Currency Exchange rates
C): Cryptocurrencies
D): Commodity Prices
What is A?
Stock indices
How much money is it estimated you need for retirement?
What is 2 million dollars?
Which ratio/multiple can be used to determine how much you are paying for a stock compared to its profits?
A) P/B ratio
B) P/E ratio
C) Net margin
D) PEG ratio
What is B
What organization regulates inflation using monetary policy in the US?
A): Federal Reserve
B): House of Representatives
C): Senate
D): White House
What is A?
The federal reserve
What is a Bear market?
When the market is weak and declines
20% or more decline
What is the role of dividends in stocks?
A) They represent a company's debt
B) They are a portion of profits paid to shareholders
C) They determine the stock's value
D) No impact on stock prices
5 steps to financial freedom : 1. Earn money , 2. Save money , 3.__Developing a Financial Plan, 4 ?
What is the fourth step to reach financial freedom ?
What is Investing?
Which stock has the highest weighting in the S& P 500?
A): Microsoft
B): Apple
C): Amazon
D): Nvidia
What is Apple?
(Though microsoft is very close)
What is the discount rate?
The tool the fed uses to impact short term interest rates. It is the interest rate it charges on loans to financial institutions.
What does diversification mean in investing?
A) Focusing on a single investment
B) Spreading investments across different assets
C) Buying and holding onto one stock forever
D) Selling off all investments at once
What is B?
Spreading investments across different assets
Challenge Question:
What is DCF
A): Depressed capital flow
B): Denominated cash flow
C): Discount capital flow
D): Discount cash flow
What is D?
Discount cash flow