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Chapter 14: Personal Finance Quiz
Test your knowledge of the personal finance chapter material!
1 / 10
What is the main reason someone might want to diversify their investments?
Answer can be found on page 153.
Correct! The rationale behind diversification is that different types of investments will pose a lower risk than any one investment that you hold, so if anything happens to one, your other investments are safe.
2 / 10
If interest rates fall, what is likely to happen to bond prices?
Answer can be found on page 152.
Correct! Bonds are highly sensitive to interest rates, so bond prices move inversely to interest rates.
3 / 10
Which of the following questions should you not answer as a personal finance reporter?
Answer can be found on page 147.
Correct! Beyond basic questions, the best way to answer a reader’s request for detailed financial advice is to suggest that they seek out an adviser.
4 / 10
True or false: For the majority of Americans, paycheck increases more than cover the increased costs brought on by the rate of inflation.
Read more on page 146.
Correct!
5 / 10
Why is it a good idea to meet financial professionals in your community?
Answer can be found on page 149.
6 / 10
True or false: Economists do not declare the market “recovered” until all consumers are past the financial crisis.
Even years after a financial crisis has transpired, many consumers feel that the recovery has passed them by when economists declare the market “recovered.” Read more on page 146.
Correct! Even years after a financial crisis has transpired, many consumers feel that the recovery has passed them by when economists declare the market “recovered.”
7 / 10
What’s a good way to make more local connections?
Answer can be found on page 150.
8 / 10
Which of the following is not a reason taking a personal financial planning course would benefit you as a reporter?
Correct! Taking courses will give you a firm foundation in personal finance, but as a reporter it is still not your job to give advice to people for their specific situations.
9 / 10
By federal law, consumers are entitled to one free credit report once every __ months from each of the three credit bureaus.
10 / 10
True or false: A stockbroker and an investment advisor are the same thing.
Stockbrokers and investment advisors are regulated by different standards. Read more on page 148.
Correct! Stockbrokers and investment advisors are regulated by different standards.
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