20 Questions
| Attempts: 1036

Questions and Answers

- 1.What is interest?
- A.
Interest is money that is easy to understand

- B.
Interest is "rent on money"

- C.
It means you are interested in money

- 2.What is simple interest?
- A.
Interest that is simple to understand

- B.
An interest rate that is a % of the principal borrowed and does not compound

- C.
Compound interest that is simplified by a calculator

- D.
A zero percent interest rate

- 3.What is compound interest?
- A.
An interest rate that compounds and complicates your life

- B.
An interest rate mothod that pays interest upon interest

- C.
A compound rate that is paid back early

- D.
A complicated problem in finance

- 4.Which type of interest, over a period of time, will pay you more?
- A.
Compound

- B.
Simple

- 5.Who said "Compound interest is the greatest invention of the 20th century?"
- A.
Richard Nixon

- B.
John F. Kennedy

- C.
Albert Einstein

- D.
Alan Greenspan

- 6.What is the greatest influencer on interest rates?
- A.
Time value of money

- B.
Risk

- C.
Time preference for consumption

- D.
Greedy corporate lawyers

- 7.Most credit card companies charge which type of interest rate?
- A.
Simple

- B.
Compound

- C.
Mixed

- D.
No interest rate

- 8.The field of economics is the study of:
- A.
Money

- B.
Resources

- C.
Interest rates

- D.
The science of making choices with limited resources

- 9.Unlimited wants and limited resources is known as the:
- A.
Economizing problem

- B.
Dismal science

- C.
Personal issues with money

- D.
Whining people who want something for nothing

- 10.The "tool from the school" of economics used to make the best choices is called:
- A.
My best guess

- B.
Flip a coin

- C.
Marginal analysis

- D.
Wing it, ready aim fire

- 11.The underlying reasoning behind marginal analysis is:
- A.
Is the marginal benefit greated than the marginal cost?

- B.
Is the marginal input of labor greater than the marginal cost?

- C.
Is the marginal revenue from producing an extra unit greated than the marginal cost to produce that extra unit?

- D.
All the above

- 12.If an additonal salesperson cost $30,000 a year to hire, but will bring in an additional $50,000 in sales, what is the marginal cost of hiring the new salesperson?
- A.
$30,000

- B.
$50,000

- C.
$20,000

- D.
$80,000

- 13.From the above, what is the marginal revenue?
- A.
$30,000

- B.
$80,000

- C.
$50,000

- D.
$20,000

- 14.If the marginal cost of adding x unit is $1000, and the marginal PROFIT is $1200, should you add the marginal cost?
- A.
Yes

- B.
No

- C.
I don't know

- 15.Nothing in life is free - NOTHING. What is the definition of "opportunity cost?"
- A.
The cost of opportunities in life

- B.
The cost of the "next best alternative I would do with my time or money"

- C.
The high cost of opportunistic living

- 16.Which is more valuable: a dollar now or in the future, or in between?
- A.
A dollar now

- B.
A dollar in the future

- C.
A dollar right between the current date and the specific future date

- 17.If you borrow $1000 at a 10% simple interest rate, how much will you pay back if it is due in one year?
- A.
$1010

- B.
$1050

- C.
$1100

- D.
$1155

- 18.What does "the present value of future cash flows" mean?
- A.
Money in the future is worth more

- B.
Money expected in the future, discounted at a % interest rate that equates it to present value, or "in today's dollars"

- C.
A Christmas present that is valued at high interest

- D.
Money in the present with interest added to get a future value

- 19.What does it mean to own "stock" in a corporation?
- A.
It means to own part of a livestock stockyard

- B.
It means you are part owner of a company by purchasing stock of the company

- C.
It means you loan money to the company, but are not an "owner"

- D.
It's just like a bond - you lend money and expect it to be paid back

- 20.What is a "bond"
- A.
It's lending money to a company and expecting it to be paid back in full to you, plus the "coupon rate" (the stated interest rate)

- B.
It's a railroad term

- C.
It's a type of glue

- D.
It's a mix between ownership equity and a debt instrument

- About Me Quizzes
- Afraid Quizzes
- Alter Ego Quizzes
- Annoying Quizzes
- Attitude Quizzes
- Awkward Quizzes
- Bad Quizzes
- Beautiful Quizzes
- Behavior Quizzes
- Body Language Quizzes
- Bored Quizzes
- Brave Quizzes
- Character Quizzes
- Clever Quizzes
- Color Personality Quizzes
- Confidence Quizzes
- Dare Quizzes
- Dominant Quizzes
- Doppelganger Quizzes
- Drinker Quizzes
- Emo Person Quizzes
- Envy Quizzes
- Evil Quizzes
- Famous Quizzes
- Friendly Quizzes
- Fursona Quizzes
- Geek Quizzes
- Good Quizzes
- Gorgeous Quizzes
- Greaser Quizzes
- Greedy Quizzes
- Honesty Quizzes
- Idiot Quizzes
- Impression Quizzes
- Innocent Quizzes
- Insane Quizzes
- Introvert Or Extrovert Quizzes
- Jealous Quizzes
- Lazy Quizzes
- Liar Quizzes
- Liberal Quizzes
- Loser Quizzes
- Magcon Quizzes
- Masculine Quizzes
- Mean Quizzes
- Meme Quizzes
- Mental Age Quizzes
- My Name Quizzes
- Mystery Quizzes
- Name Quizzes
- Naughty Quizzes
- Nerd Quizzes
- Noob Quizzes
- Normal Quizzes
- Outgoing Quizzes
- Persona Quizzes
- Personality Test Quizzes
- Personality Traits Quizzes
- Playboy Quizzes
- Popular Quizzes
- Predator Quizzes
- Preppy Quizzes
- Pretty Quizzes
- Princess Quizzes
- Procrastination Quizzes
- Quality Quizzes
- Real Name Quizzes
- Real Or Fake Quizzes
- Romantic Quizzes
- Run Away Quizzes
- Shy Quizzes
- Silly Quizzes
- Stalker Quizzes
- Stereotype Quizzes
- Stoner Quizzes
- Swag Quizzes
- Sweet Quizzes
- Talent Quizzes
- Test Yourself Quizzes
- Theories Of Personality Quizzes
- Traits Quizzes
- True Personality Quizzes
- Truth Quizzes
- Ugly Quizzes
- Weird Quizzes

×

Wait!

Here's an interesting quiz for you.