Money IQ Quiz Round 2
Money IQ Quiz - Round 2
You’ve already tested your Money IQ once, but you’re ready for round two. Let’s see how you measure up. Answer each question to the best of your ability and see where you rank in terms of financial knowledge.
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1. Which of the following would not be considered an “asset”?
2. Which of the following is NOT a form of payroll tax?
A. Income tax withholding.
B. Social Security and Medicare.
D. All are types of payroll taxes.
3. Every 12 months you can get a free credit report from which of the following?
A. A credit reporting agency (e.g., Equifax, Experian, Trans Union).
B. Your bank.
C. The IRS.
D. The FDIC.
4. What determines how much life insurance you need?
A. Income replacement.
B. The balance on your home mortgage.
C. Total debt.
D. All of the above.
5. How long does it take for a “derogatory” (bad credit mark) to be removed from your credit score?
A. 1-3 year.
B. 4-6 years.
C. 7-10 years.
D. 11-13 years.
6. What does it mean to be “upside down” regarding your home mortgage?
A. You do not have enough money to pay your mortgage payment.
B. You owe more money on your home than the home is worth.
C. You no longer qualify to own your home.
D. Your mortgage lender wants to foreclose on you.
7. What is the Standard & Poor’s 500 (S&P 500)?
A. The 500 publicly-traded companies that represent American manufacturers.
B. The 500 fastest growing companies in America.
C. The top 500 publicly traded corporations in America
D. A popular NASCAR race held each fall in Toledo, Ohio.
8. What is the maximum amount of money the FDIC (Federal Deposit Insurance Corporation) insures your bank deposits?
9. What is difference between an auto lease and an auto loan?
A. There is no difference; they are different terms for the same thing.
B. With an auto lease, you have no actual ownership of the vehicle.
C. With an auto loan, after all payments have been made, you must return the car to the dealer.
D. An auto loan has much higher interest rates.
10. What is probate?
A. The amount of bail set in a criminal matter.
B. The interest rate on any legal promissory note.
C. Another term for an IRS tax refund.
D. The legal process to handle the estate of a deceased person.
11. What is a 529 Plan?
A. An education savings account designed to help families set aside funds for future college costs
B. A section of the Internal Revenue Code.
C. A savings plan that allows money to grow tax deferred, with distributions that are tax exempt.
D. All of the above
12. What is significant about the terms Chapter 7, Chapter 11, and Chapter 13?
A. They refer to critical portions in the Federal Tax Code concerning the amount of taxes owed by individuals or businesses.
B. They are bylaws in the US Constitution concerning taxation.
C. They are provisions in the US Penal Code concerning federal tax evasion.
D. They are types of bankruptcies that are filed by individuals or businesses.
13. At what age can a person begin taking their Social Security benefit?
14. What is the difference between Roth IRA and Traditional IRA?
A. Traditional IRA is funded by pre-tax money; Roth IRA is funded by after-tax money.
B. In a Traditional IRA, you pay taxes when you withdraw funds; in a Roth IRA, you don’t pay taxes upon withdrawal.
C. Both A and B.
D. Traditional IRA is a savings vehicle for a married couple; Roth IRA is a savings vehicle for single people.
15. What is the difference between the retirement plans 401(k) and a 403(b)?
A. A 401(k) is for adults; a 403(b) is for minors.
B. A 401(k) is used in for-profit organizations; 403(b) is used in nonprofit organizations.
C. A 401(k) is for salary wage earners; 403(b) is for hourly wage earners.
D. A 401(k) is for white collar workers; 403(b) is for blue collar workers.
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