Quiz Alert: How much do you know about money and economics?

By: Carolyn Brooks Fleming
Estimated Completion Time
6 min
Quiz Alert: How much do you know about money and economics?
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About This Quiz

Take this quiz that's all about wealth!
The euro, the official currency of the eurozone, was launched on January 1, 1999, but when was actual euro cash introduced?
July 1, 2000.
January 1, 1999.
January 1, 2002.
For the first three years after it was launched, the euro was only used in electronic payments. Banknotes were introduced on January 1, 2002, replacing local currencies at fixed rates of exchange.
July 1, 1999.

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Who first came up with the phrase "trickle down," as it relates to economics?
US Federal Reserve Chairman Alan Greenspan.
US President Ronald Reagan.
Comedian Will Rogers.
Comedian Will Rogers commented about the theory that money would "trickle down" to the needy, after the Hoover administration gave money to the wealthy during the Great Depression, hoping it would ultimately benefit the poor.
Economist Milton Friedman.

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What popular song features the lyrics, "I wanna be on the cover of "Forbes" magazine / Smiling next to Oprah and the Queen."
"Billionaire," by Travie McCoy, featuring Bruno Mars.
The song is "Billionaire," by Travie McCoy, featuring Bruno Mars. Later, the lyric continues,"I swear the world better prepare / For when I'm a billionaire."
"Money for Nothing," by Dire Straits.
"If I Had $1,000,000," by Barenaked Ladies.
"Make the Money," by Macklemore & Ryan Lewis.

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What is a mutual fund?
A collection of stocks in related industries, such as oil and automotive.
Funds that are spent by two or more businesses in a mutually beneficial manner.
An investment strategy in which many people pool money together to purchase a variety of stocks, bonds, or other investments.
A mutual fund is an investment strategy in which many people pool money together to purchase a variety of stocks, bonds, or other investments. A group has greater purchasing power than a bunch of individuals.
A specific amount of money set aside to fund a business venture.

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What is the disposition effect?
The law of supply and demand.
The phenomenon that investors are inclined to hold on to bad investments for too long and to sell winning investments too soon.
The disposition effect is the tendency of investors to hold on to bad investments for too long and to sell winning investments too soon. This is the opposite of the best advice, which is to buy low and sell high.
The notion that money will buy happiness.
The inclination to spend money as soon as it is earned, so it won't burn a hole in your pocket.

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What is the official currency of Albania?
The lek.
The lek is the official currency of Albania. One lek is equal to 100 quindarka, but the quindarka is no longer produced.
The taka.
The Albanian dollar.
The birr.

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What is a promissory note?
A written agreement to repay a loan at a later date than originally promised.
A document that contains a written promise to pay a specific amount on a specified date or on demand.
A promissory note is a document that contains a written promise to pay a specific amount on a specified date or on demand. Sometimes it includes a repayment schedule with interest included.
A court judgment.
A written agreement involving barter, not money.

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What was the first universal credit card, usable at a number of establishments?
Visa.
Discover.
MasterCharge.
The Diners Club Card.
The first universal credit card was the Diners Club Card, introduced in 1950. Before that, some department stores issued proprietary cards, usable only at one store or chain.

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What is money laundering?
Gradually increasing income.
Hiding the source of money illegally obtained, making it seem legal.
Money laundering is hiding the source of money illegally obtained, making it seem clean and legal. Often funds are funneled into and out of foreign accounts and legitimate businesses, to conceal the original source.
Forgetting to remove bills and coins from pockets before washing clothes.
The gradual aging process of money as it is used, especially when it becomes softer, less crinkly.

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What is Say's law?
The money supply must be held constant.
Supply creates its own demand.
Most economists disagree with Say's law, that supply creates its own demand. Jean-Baptiste Say lived from 1767 to 1832.
Wealth is the result of the interaction of desire and scarcity.
Demand creates its own supply.

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What are liquid assets?
Stock specifically in the beverage industry.
Investments in crude oil.
Assets that change in value as seasons or popular tastes change.
Assets that are readily available.
Liquid assets are readily available for use. Money is the most liquid of all assets. Items that can be sold quickly, such as stocks and bonds, are fairly liquid. Real estate is non-liquid, because it can be hard to sell and it can take a long time for funds to transfer after a sale.

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What is unusual about the rhythm track on Pink Floyd's 1973 song, "Money"?
There is no rhythm track.
The rhythm track is acapella, made with only human voices.
It features safe-cracking sounds.
It's a tape loop of money-related sounds, including a cash register and jingling coins.
"Money" is unusual because the rhythm track includes sound effects of a cash register and jingling coins. For music geeks: the song is also unusual because parts of it are played in a 7/8 time signature.

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In what year did the US Department of the Treasury announce that currency in denominations of $500, $1,000, $5,000, and $10,000 would be discontinued?
1929.
1945.
1995.
1969.
The announcement came on July 14, 1969. Although these larger bills were distributed until 1969, they hadn't been printed since 1945. They are still legal tender, however.

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In Marxist theory, what is the transitional phase between the overthrow of capitalism and the realization of communism?
Mixed economy.
Socialism.
In Marxist theory, socialism comes between the overthrow of capitalism and the realization of communism. Socialism is the collective ownership of the means of production.
Traditional.
Dictatorship.

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What is speculation?
Buying or selling assets to make a quick profit.
Speculation is buying or selling assets to make a quick profit. It is the opposite of long-term investment.
Estimates about future economic growth.
Guesses about future changes in demand for a specific product.
The study of past economic development.

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What is the term for the color-changing properties of the ink used to print money in the US?
Luminescence.
Prismism.
Phosphorescence.
Birefringence.
Birefringent ink changes color when viewed at different angles. This is just one strategy implemented to thwart counterfeiters.

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Why is it legal in the US to price gasoline to 1/10th of a penny?
Technically such pricing is not legal, but the custom has prevailed.
In the Coinage Act of 1903, pricing at tenths of a cent was legalized for marketing purposes.
The Revenue Act of 1932 legalized gas prices to the tenth of a penny, in conjunction with a new Federal gasoline tax.
In the Coinage Act of 1792, US currency was standardized, including the mill, which was 1/10th of a cent.
The mill, valued at 1/10th of a cent, was made part of US currency in 1792, allowing for pricing to the 1/10th of a cent. Not only gasoline, but also property taxes, stock prices, and utility bills are sometimes priced to that decimal place. The total is then rounded up or down to the nearest cent.

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What was the largest denomination ever printed by the US Bureau of Engraving and Printing?
$100,000.
The $100,000 Gold Certificate, Series 1934, was printed from December 18, 1934, through January 9, 1935, secured by actual gold bullion in the Treasury. These notes were only used to transfer funds between Federal Reserve Banks.
$1,000,000.
$500,000.
$50,000.

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In investment terms, what is diversification?
Investing with people of different races, religions, and cultures.
Investing different amounts of money in different ventures.
Mixing a variety of investments in a portfolio.
Diversification, or mixing a variety of investments in a portfolio, protects an investor against a catastrophic loss in case one industry or investment type has a severe downturn.
Moving money repeatedly from one type of investment to another.

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In the standard US version of the game Monopoly, what color is the $5 bill?
Yellow.
White.
Blue.
Pink.
In a 2008 redesign, some Monopoly bills changed color, but the $5 bill remains its traditional pink. $10 bills changed from yellow to blue and $50 bills changed from blue to purple.

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What does "EMV" stand for, regarding credit cards equipped with computer chips?
Electronic Money Valuation.
Economic Master Verification.
Europay, MasterCard, and Visa.
EMV stands for Europay, MasterCard, and Visa. Cards with computer chips are meant to protect consumers and reduce fraud.
Essential Monetary Venture.

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What is unusual about Japanese 50-yen and 5-yen coins?
They have holes.
The 50-yen and 5-yen coins have a central hole for three reasons: it saves on material costs; it hinders counterfeiters; and it helps people tell coins apart just by touch. The gears around the hole in the 5-yen coin symbolize Japanese agriculture, fisheries, and industry.
They are square.
They float.
They are blue.

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Who is the only living US president whose image was struck on a US coin?
Abraham Lincoln.
George Washington.
Calvin Coolidge.
There is a law in the US which states that no living person can be featured on a coin, so the US will not be like a monarchy. However, President Calvin Coolidge's image appeared on a commemorative coin, in celebration of the Sesquicentennial of American Independence. The coin was minted in 1926.
James K. Polk.

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When the Bank of Canada issued new polymer $5 and $20 bills in 2013, what controversy ensued?
The maple leaves had the wrong number of points.
People thought the bills smelled like maple syrup.
Officials denied that the new Canadian polymer bills were infused with the smell of maple syrup. What they cannot deny, however, is the money's tendency to get sticky or even melt when it is heated.
The maple leaf was omitted.
Some objected because the bills featured images of a dragon parade and winemaking.

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What is "seed money"?
The agricultural economy.
Money used to start a business.
"Seed money" is the money used to start a business. Family, friends, banks, and Kickstarter are all potential sources of seed money.
Money used to keep a farm afloat.
Profit and loss in the organic food industry.

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Who was the first African-American to appear on US currency in circulation?
Martin Luther King.
George Washington Carver.
Booker T. Washington.
Booker T. Washington was the first African-American to appear on US currency in circulation. The coin was a memorial half-dollar. Washington was born a slave, but he became a celebrated educator and activist.
Maya Angelou.

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For what practical reason would a person bury pennies in their garden?
Good luck.
To repel slugs.
Bury pennies in your garden to repel slugs. They get electric shocks from both the copper and the zinc.
To help a house sell faster, per superstition.
To add nutrients to the soil.

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What is Bitcoin?
A currency with no central authority and no bank, available to everyone.
Bitcoin is a currency with no central authority and no bank, available to everyone. And there's an app for that - Bitcoins can be exchanged between phones. Acquire bitcoins by accepting them as payment or by purchasing them from an exchange.
Coins used in casino slot machines.
The official currency of Bahrain.
Electronic coins for vending machines.

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Which culture was the first to stamp the image of a living person on a coin?
The Sumerians.
The Greeks.
The Romans.
The Romans were the first culture to stamp the image of a living person on a coin. Julius Caesar was featured on a coin in 44 B.C.
The Egyptians.

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What percentage of US paper currency printed is $1 bills?
45%.
45% of all US bills printed are $1 bills. For what it's worth, 454 bills weigh one pound.
85%.
30%.
60%.

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What is a zero-based budget?
A budget in the millions or billions, expressed in accounting ledgers and spreadsheets with the ending zeros omitted to save space.
No income and no outgo, as with a new business.
Slang for being broke.
A budget in which every dollar is assigned to a specific use, even before it is received.
With a zero-sum budget, every dollar is assigned to a specific use, even before it is received. Electric bill paid? Yes. Caramel latte purchased on a whim? Probably not.

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What color ink is used to print the back side of all US bills?
Black.
Gray.
Blue.
Green.
All US bills, regardless of denomination, are printed in green on the back side. The faces are printed with black ink and color-changing ink.

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Where could you spend a Rai stone - a limestone disc that is the world's heaviest currency?
The Republic of Malta.
The Island of Yap.
The Island of Yap is in the western Pacific Ocean, between Palau and Guam. Explorers from the island brought back large chunks of limestone that they carved into discs, and these came to be used as currency. Islanders don't have to move the discs; everyone knows who owns which Rai stones.
The Isle of Railand.
The Republic of Nauru.

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What is the name of the actual eagle, adopted by workers at the US Mint, who modeled for the US silver dollar?
Eddie.
Eustis.
Peter.
The eagle who modeled for the US silver dollar was named Peter. Sadly, he later died when his wing got caught in a coining press. Peter was stuffed and is still on display in the lobby of the US Mint in Philadelphia.
Uncle Sam.

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Where did the expression, "Money is the root of all evil," originate?
Benjamin Franklin.
Aesop's Fables.
Thomas Jefferson.
The Bible.
The expression, "Money is the root of all evil," comes from the Bible. Specifically, the quote is, "The love of money is a root of all kinds of evil, for which some have strayed from the faith in their greediness, and pierced themselves through with many sorrows" (I Timothy 6:10).

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