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MSBC FINAL QUIZ

Total questions: 42

Worksheet time: 20mins

Name
Class
Date
1.

What is investing?

a)

Act of giving your money away for nothing in return

b)

Act of committing money with expectations capital gains

c)

Act of receiving capital gains by being nice to others

d)

Act of receiving money from the bank in the form of a loan

2.

A type of investment that invests in a lot of different companies is called

a)

Stocks

b)

Bonds

c)

Mutual funds

d)

T-bills

3.

What is a stock?

a)

A loan an investor makes to a company or government that pays interest over time.

b)

A share of ownership in a company

c)

A collection of investments sold as a package.

d)

An option to purchase something in the future at todays price.

4.

What is the primary reason for a company to issue stock?

a)

The stocks help investors earn a higher rate of return

b)

To raise money to grow the company

c)

To distribute the risk of bankruptcy across more investors

d)

To increase greater awareness of the company

5.

This is where your orders to buy or sell stock are sent and carried out

a)

Stock Exchange

b)

Brokerage Firm

c)

Stock Meeting Place

d)

Money Exchange

6.

All of the following are ways to earn money as a stockholder EXCEPT:

a)

getting dividends

b)

selling the stock at a higher value

c)

stock splits

d)

selling the stock at a lower value

7.

Spreading your investments around to inrease financial security

a)

Risk assessment

b)

Diversification

c)

Stocks, bonds & cash

d)

Liquidity trap

8.

If you bought a stock at $20 a share and now it's worth $40 a share how much do you make per share if you sell all your stock now?

a)

$10

b)

$40

c)

$20

d)

-$20

9.

Which of the following is NOT a stock index?

a)

DOW JONES

b)

S & P 500

c)

NASDAQ COMPOSITE

d)

P/E RATIO

10.
What is inflation?
a)
rise in all prices
b)
rise in most prices
c)
rise in some prices
d)
rise in general prices
11.
When inflation is high the _______________of the dollar decreases
a)
cost value
b)
purchasing power
c)
importance
d)
validity
12.

What is Bull market?

a)

Buying a bull online

b)

When everything goes up and people are buying.

c)

When prices are going down and nobody is buying.

d)

When people are selling false information.

13.

What is a Bear market?

a)

When prices go up and everybody is buying.

b)

Selling a bear online.

c)

When prices go down and nobody is buying.

d)

Buying bears online.

14.

What is Blue-chip stock?

a)

A safe investment that generally attracts conservative investors

b)

Blue corn chip in the grocery store.

c)

Poker chips.

d)

Blue potato chips.

15.

Dividends are_____?

a)

Money shareholders lose in stock.

b)

Money shareholders pay to buy stock.

c)

Stock that splits.

d)

Money shareholders received from stock profits.

16.

What is the differences between stocks and bonds?

a)

They are both investments.

b)

A stock is what corn grows on, and a bond gets you out of jail.

c)

Stock represents ownership, and bonds represents your word.

d)

A stock represents ownership, and bonds represents a loan.

17.

"A/An ________ is a resource controlled by the company and provide a dollar (economic) value to the company. They are used as tools to generate revenue.

a)

Asset

b)

Liability

c)

Owner's Equity

d)

None of the above

18.

"A/An ________ is what the company owes. This is paid for with debt if they don't have the funds to purchase it.

a)

Asset

b)

Liability

c)

Owner's Equity

d)

None of the above

19.
Which of the following is the best definition of REVENUE?
a)
The total amount of income a business makes from selling products or services
b)
The amount of money a business has LEFT over after paying for their costs.
c)
The total amount of money a business spends.
d)
The amount of money a business loses every month.
20.
Which of the following is the best definition of PROFIT?
a)
The total amount of income a business makes from selling products or services
b)
The amount of money a business has left over after paying for their costs.
c)
The total amount of money a business spends.
21.
Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket.  For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth.  This month she made and sold 15 blankets. What is Kelly's total REVENUE?
a)
$25
b)
$225
c)
$375
d)
$750
22.

The money you spend on your needs and wants may be termed as........

a)

Budgets

b)

Incomes

c)

Expenses

23.

Payment of gas bill based on the usage is an example of ........

a)

Fixed expenses

b)

Variable expenses

c)

Income generating expenses

24.

........... is extremely important to meet our goals.

a)

Saving

b)

Expenses

c)

Loan payment

25.

What is the equation to find equity?

a)

Equity = Assets + Liabilties

b)

Equity = Assets - Liabilties

c)

Equity = Assets / Liabilties

d)

Equity = Assets * Liabilties

26.

What is the equation for profit?

a)

Profit = Revenue + Expenses

b)

Profit = Revenue - Expenses

c)

Profit = Revenue / Expenses

d)

Profit = Revenue * Expenses

27.

"A/An ________ shows the "bottom line" by including revenue and expenses.

a)

Balance Sheet

b)

Income Statement

c)

Cash Flow Statement

d)

None of the above

28.

"A/An ________ is a business entity that is owned by its shareholder(s), who elect a board of directors to oversee the organization’s activities.

a)

Cooperative Business

b)

Non-legal Entity

c)

Corporation

d)

Lemonade Stand

29.

On major advantage of a corporation is:

a)

Always have profits

b)

Limited Liability

c)

minimum failure

d)

All of the above

30.

Disadvantage of corporation is:

a)

Excessive tax filings

b)

Double taxation

c)

Independent management

d)

All of the above

31.

One Benefit of a corporation is:

a)

More family time

b)

Limited legal protection

c)

Assets protection

d)

Ability to be your own boss

32.

What are some risks involved in running an online business?

a)

Online Security

b)

Customer Disputes

c)

Warehousing and Logistics Issues

d)

All of the above

33.

A price reaction in the stock market of 10% or more is called a ______.

a)

Correction

b)

Short Sale

c)

Derivative

d)

Call Option

34.

What is the typical rate of inflation (in North America)?

a)

1%

b)

2%

c)

3%

d)

4%

35.

What are some ways to counter inflation?

a)

Negotiating salary

b)

Investing in commodities

c)

Investing in stocks

d)

Buying properties

e)

All of the above

36.

How do governments earn the majority of their money?

a)

Scamming you

b)

From other countries

c)

Taxes

d)

None of the above

37.

"________ taxes are collected when you purchase goods/services.

a)

Property

b)

Corporate

c)

Sales

d)

Income

38.

"HST stands for ______"

a)

Hockey Sticks Today

b)

Huddled Sales Tax

c)

Harmonized Sales Tax

d)

Honey Strudels Tomorrow

39.

HST in Ontario is ___%

a)

10

b)

11

c)

12

d)

13

40.

Eamonn spent $1500 in Ontario on a new phone. How much money would he have to pay on HST?

(a)  

41.

What does "TIPS" stand for?

a)

To Insure Punctual Service

b)

To Insure Prompt Service

c)

To Insure Precise Service

d)

To Insure Punctual Satisfaction

42.

If your total bill (including tax) was $113. You decide to give a tip of 26%. What is your final bill (including tax and tip)?

(a)