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Money News

Quizzical Education, Vol. 1: Test Your Money News IQ

May 10, 2018

1 min read

Test your knowledge of some of the most important news stories involving money. This week, see if you know which automaker is trimming its lineup, the two companies at the center of the next big telecom merger, and where all of the freed-up money from December’s tax cuts are actually going.

Find out in the 7 questions below:

1/7

Many American businesses are flush with extra cash following December’s corporate tax cuts, and shareholders are being rewarded as companies engage in ______.

Market manipulation
Monopolization
Dividend disbursement
Stock buybacks

Companies are buying their own shares on the stock market, which is called a “stock buyback”. When a company reabsorbs its shares, it can increase the value of the remaining shares, effectively rewarding stockholders with higher share prices.

Read more:
What’s a Stock Buyback?

2/7

This automaker announced a drastic change to its strategy: That it would remove almost all car production, and instead focus on trucks and SUVs.

Toyota
GM
Tesla
Ford

Ford, in an effort to reach lofty profit goals, has decided to cut all of the cars from its lineup and focus on higher-margin vehicles. The lone exceptions will be the Ford Mustang, and the to-be-released Focus Active Crossover, which isn’t quite a car, but will be the closest thing left in the lineup. So, say goodbye to the Taurus, Focus, Fusion, and Fiesta.

Read more:
Ford to Abandon Car Production In Favor of Trucks and SUVs

3/7

President Trump has floated the idea of creating a ___, which could potentially benefit defense and aerospace companies such as Boeing and Lockheed Martin.

"Space Force"
Death Star
Moon base
New version of "Moon Shoes"

Trump has, on multiple occasions, brought up the idea of a new military branch that would operate exclusively in outer space. This “Space Force,” as he’s referred to it, would help America gain a foothold in the outer space, but the logistics and costs of creating it make it a moonshot idea.

Read more:
President Trump Wants to Add a “Space Force” to the U.S. Military

4/7

In what would create the second-largest telecom company in the U.S., _____ and _____ are proposing a merger worth $27 billion.

Verizon, Sprint
AT&T, T-Mobile
Sprint, T-Mobile
AT&T, Verizon

T-Mobile and Sprint, the third and fourth-largest mobile carriers in the U.S., have announced plans to merge. The new company would be second only to Verizon in terms of size with roughly 100 million subscribers. This isn’t the first time the two have flirted with the idea of a merger, but it must be approved by regulators, which may be concerned about increasing monopolization of the mobile market.

Read more:
T-Mobile and Sprint May Merge: What That Could Mean For You

5/7

During the first quarter of 2018, the government’s ______ hit record levels.

Trade deficit
Corruption
Kill count
Borrowing

According to the Treasury, government borrowing reached $488 billion to begin 2018, an all-time high. The primary driver for the increase in borrowing is lower-than-anticipated revenues due partially to tax cuts signed into law in December. Officials do, however, expect borrowing levels to recede in coming months.

Read more:
The Government is Borrowing at Record Levels. Should You Care?

6/7

This company’s annual meeting in Omaha, Nebraska, played host to thousands of investors recently, for what is sometimes called the “Woodstock of Capitalism.”

Tesla
Berkshire Hathaway
Amazon
Toys 'R' Us

Omaha is home to Berkshire Hathaway, the holding company presided over by the massively influential investor Warren Buffett. Every year, thousands of people flock to Omaha for the company’s annual meeting, and to hear from Buffett, in hopes of getting prime investing morsels for the coming year.

 

7/7

After its involvement in the recent Facebook data-breach scandal, this company has decided to close up shop--though it appears that it may continue operating under different name.

Adobe
Blackwater
Instagram
Cambridge Analytica

Cambridge Analytica, a data research firm that was caught up in the data breach scandal with Facebook, also played a significant role in the 2016 presidential election, building voter profiles for the Trump campaign. The hullabaloo surrounding the Facebook breach, however, brought the company (and its questionable methods) into the limelight, likely leading to its closure. It appears, however, that it’s set to reopen under a different name, but with the same executive team, as Emerdata.

Read more: 
Why Do Companies Change Their Names?

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*The results of this quiz does not imply any level of skill or training on the part of any customer. The content of this quiz is for educational purpose only.

By Sam Becker
Sam Becker is Stash's financial writer.

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