Personal Finance Quiz | Million Endeavour

To get an accurate reading of your personal finance knowledge, please resist the temptation to google the answers!

[General Finance] Which of the following is NOT passive income?

Business royalties

Stock investing

Cash back credit card

Positive rental income

[General Finance] Which statement is a myth?

Debt can be good

Everyone has the potential to be wealthy

You need money to make money

The bigger the risk, the bigger the reward

[General Finance] How do you calculate net worth?

Income - Liabilities

Assets - Liabilities

Income - Expenses

Assets + Income

[General Finance] Which of the following is NOT a liability?

$7,000 on available line of credit

$200,000 in mortgage

$15,000 in student loans

$400 on credit card

[General Finance] What is the formula for early retirement?

Income > Liabilities

Assets > Liabilities

Income > Expenses

Passive Income > Expenses

[Business] Liabilities + Equity = ?

Net Revenue

Income

Expenses

Assets

[Business] Sales - Expenses = ?

Assets

Liabilities

Net income

Equity

[Business] Which business legal structure would be most fitting for a medium sized company and has protection to your assets if you were to be sued?

General Partnership

Proprietorship

Limited Liability Company

Corporation

[Business] You can not deduct this expense from your business taxes.

Advertising

Business entertainment

Commuting cost to work

Home office

[Business] You would you need to use this intellectual property to protect a blog post.

Registered trademark

Patent

Trademark

[Real Estate] What is a property foreclosure?

The mortgage lender attempts to recover the balance of a loan by forcing the sale of a property

The owner is forced to sell the property due to the incapability to make payments

The mortgage lender decides to back out of the mortgage agreement

The owner decides to close the property to the highest bidder

[Real Estate] What is the minimum downpayment required without having to pay for mortgage insurance?

25%

15%

20%

10%

[Real Estate] This expense is not included in a property closing cost.

Land transfer tax

Title insurance

Legal fees

Realtor fees

[Real Estate] Which of the following is not a required monthly expense for a 3 bedroom-2 bathroom house?

Hydro

Maintenance fee

Property tax

Mortgage (assuming there is one)

[Real Estate] This expense is not the responsibility of the property buyer.

Realtor fees

Land trasfer tax

Home inspection

Legal fees

[Stocks] Warren Buffet is one of the most influential investors. Which of these quotes is inaccuate?

“Be fearful when others are greedy and greedy only when others are fearful”

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price”

“It is necessary to do extraordinary things to get extraordinary results”

“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years”

[Stocks] In stocks, a bear market is....

When a stock goes down

An overall sustaining downward trend

When the majority of stocks go up

An overall sustaining upward trend

[Stocks] What is "short selling" a stock?

To sell a stock as soon as you purchase it

To use borrowed money to invest in stocks

To set a date and time that the broker will automatically sell

To trade stocks by profiting from share price decline

[Stocks] Which of the following is the most conservative investment?

ETFs

Mutual funds

Bonds

GIC or CD

[Stocks] Which statement is UNTRUE of the P/E ratio metric?

P/C can be calculated by: Market value per share/earnings per share

P/E stands for price per earnings

A low P/E ratio could suggest that the stock is undervalued

A negative P/E ratio is impossible

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