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Personal Finance Jeopardy

Personal Finance Jeopardy. Saving and Investing - 100. Q. What term goes along with the following definition? “Income withheld from current spending for future use” A. Saving. Saving and Investing - 200. Q. Put the following in order of possible rate of return from greatest to least.

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Personal Finance Jeopardy

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  1. Personal Finance Jeopardy

  2. Saving and Investing - 100 • Q. What term goes along with the following definition? • “Income withheld from current spending for future use” • A. Saving

  3. Saving and Investing - 200 • Q. Put the following in order of possible rate of return from greatest to least. • CD, Piggy Bank, Savings Account, Stocks • A. Stocks, CD’s, Savings Account, Piggy Bank

  4. Saving and Investing - 300 • Daily Double • Q. Generally speaking, the greater the risk, the greater the ________. • A. reward or return

  5. Saving and Investing - 400 • Q. What term goes along with the following definition? • “A principle that can help you determine how many years it will take your money to double at a given rate” • A. Rule of 72

  6. Saving and Investing - 500 • Q. Within 3%, how much of your income should you aim to save and invest • A. 10%

  7. Saving and Investing - 200 • Q. What term goes along with the following definition? • “money spent to increase current or future income” • A. Investing

  8. Saving and Investing - 400 • Q. List two investment vehicles that guarantee a return. • A. CD’s and Savings Account

  9. Saving and Investing - 600 • Q. List two investment that would be considered highly risky. • A. Commodities, Collectibles, Penny Stocks

  10. Saving and Investing - 800 • Q. Discuss why mutual funds carry much less risk than individual stocks • A. Diversification

  11. Saving and Investing - 1000 • Q. Explain why you would be actually losing money by keeping your money in the following for an extended period of time?

  12. Credit/Interest - 100 • Q. What term goes along with the following definition? • “A payment received from a financial institution as a result of an investment or savings account” • A. Interest

  13. Credit/Interest - 200 • True or False: • All I need to pay on my credit card is the minimum monthly payment and I will not owe interest. • A. False

  14. Credit/Interest - 300 • Q. In terms of credit cards, what does the card’s APR represent? • A. Yearly rate of interest charged for the use of credit

  15. Credit/Interest - 400 • Q. What's the worst kind of debt you can have? • Mortgage • Credit Card • School Loan • Car Loan

  16. Credit/Interest - 500 • Q. What term goes along with the following definition? • “Interest earned on interest after it is added to the principal” • A. Compounding Interest

  17. Credit/Interest - 200 • Q. In monetary terms define principal • A. The initial amount of money invested

  18. Credit/Interest - 400 • Q. What term goes along with the following definition? • “A loan that enables people to buy something now and to pay for it in the future.” • A. Credit

  19. Credit/Interest - 600 • Q. Good debt is: a. Borrowing money for anything you really want but can't afford b. Borrowing money for anything you really need but can't afford c. Borrowing money to pay off your child's debt d. An oxymoron

  20. Credit/Interest - 800 • Q. Calculate how much $1000 would be worth after 2 years @ 5% simple interest. • A. $1,100

  21. Credit/Interest - 1000 • Daily Double • Q. Calculate how much $1000 would be worth after 3years @ 7% interest compounded yearly. • A. $1225.04

  22. Stocks - 100 • Q. Stock prices are set by the workings of _________ and ________. • A. Supply and Demand

  23. Stocks - 200 • Q. True or False: Buying stocks is a sure way to make money • A. False

  24. Stocks - 300 • Q. What term goes along with the following definition? “Payment received by stockholders from the earnings of the corporation” • A. Dividends

  25. Stocks - 400 • Q. In dealing with stocks one should try and buy _____ and sell ______. • A. Low and high

  26. Stocks - 500 • Q. Give a fictional example of an investor with a diversified stock portfolio vs. an investor w/o diversification.

  27. Stocks - 200 • Q. What are the two methods in which you can make money in stocks • A. Dividends, and Buying Low and Selling High

  28. Stocks - 400 • Q. With greater diversification comes less _________. • A. Risk

  29. Stocks - 600 • Q. If you're looking for a place to invest money you'll need in a year or two for a house, why are stocks not our best investment option? • A. Too much risk

  30. Stocks - 800 • Daily Double • Q. List two factors that effect stock prices. • A. Investor Actions Business Conditions Government Actions Economic Indicators International Events

  31. Stocks - 1000 • Q. Discuss the difference in terms of risk and reward between penny stocks and blue chip stocks. • Penny Stocks = Great Risk w/ Varied Reward Blue Chip Stocks = Less Risk w/ Steady Reward

  32. Retirement Options - 100 • Q. True or False: Most people will be able to retire in style on Social Security payments alone. A. False

  33. Retirement Options - 200 • What does “IRA” stand for • Individual retirement account

  34. Retirement Options - 300 • Q. The best way to estimate how much you must save today to achieve a comfortable retirement in the future is to: a. Wing it. b. Ask your friends and relatives how much they're saving and do the same. c. Estimate the expenses you'll face in retirement and then calculate the amount of savings you'll need to supplement Social Security and other income.

  35. Q. What term goes along with the following definition? “A type of retirement plan that allows an employee to elect to defer income by making pretax contributions to a profit sharing plan, a target benefit plan, or a stock bonus plan. A. 401(k) Retirement Options – 400

  36. Retirement Options - 500 • Q. How old must you be before you can withdraw money from a 401(k) or IRA without penalty? • A. 59 1/2

  37. Retirement Options - 200 • Q. Currently, how much money can you deposit in you IRA every year? • A. $2,000

  38. Retirement Options - 400 • Q. Explain the role inflation plays in retirement planning.

  39. Retirement Options - 600 • Q. What term goes along with the following definition? “Relatively small amounts of money can grow into significant sums over time through the power of compounding interest” A. Time Value of Money

  40. Retirement Options - 800 • Q. What is the major difference between a 401(k) and a 403(b) • A. 403(b) are offered by non-profit org.

  41. Retirement Options - 1000 • Q. Explain the major difference between a Traditional IRA and a Roth IRA • A. Traditional = Money is taxed when a withdrawal is made Roth = Money is taxed prior to the investment and is tax-free upon withdrawal

  42. Final Jeopardy Category • The Stock Market

  43. Final Jeopardy Question • Q. Within 3% points, on average, how much have stocks returned annually since the end of World War II? • A. 11%

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