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Money News

Quizzical Education, Vol. 13: Test Your Money News IQ

August 02, 2018
weekly news quiz

1 min read

Test your knowledge of the week’s most important money news stories. This week, see if you know which soda company is preparing to raise its prices, what the “marshmallow test” is, and which company lost a record amount of stock market value after a poor earnings report.

Find out in the 7 questions below:

1/7
Quiz
 

How do you conduct the “marshmallow test?”

Ask your friend to see how many marshmallows he can fit in his mouth at once.
Offer your friend a marshmallow; Promise her two marshmallows if she waits 10 minutes to eat the first one.
Offer your friends marshmallows and butter knives, and see who can carve the most creative Peep.
Offer a marshmallow to your coworkers; See who shoves it up their nose first.

The marshmallow test is all about delaying gratification—if you can wait to eat the first, you’ll get another. You can apply the same principles to your finances, and reap the rewards in the form of interest over time.

Read more: Can You Pass The Financial “Marshmallow Test”?

2/7
Quiz
 

This company said it will raise prices on its products as a result of tariffs implemented by the White House.

Pepsi
Coca-Cola
Harley-Davidson
Caterpillar

Coca-Cola’s CEO said that the company would be raising prices on its products as a direct result of the tariffs levied by the Trump administration. Increases are most likely due to the increased costs of metals, like aluminum.

Read more: Coca-Cola is Raising U.S. Soda Prices in Response to Tariffs

3/7
Quiz
 

___ are typically less than $500, repaid in two-to-four weeks, and can have an effective interest rate of as much as 500%.

Auto loans
Certificates of deposit
Gambling debts
Payday loans

Payday loans—though sometimes helpful when you’re in a jam—can be dangerous financial tools. If you’re not careful, you can end up in a cycle of escalating debt. That’s why so many payday lenders are called “predatory.”

Read more: What Are Payday Loan Stores? The Sharks of the Financial Industry

4/7
Quiz
 

What do we call the process of dividing the investments in a portfolio into different asset classes?

Diversification
The divvy-shimmy
Asset Allocation
Rebalancing

Though diversification and rebalancing are closely related terms, we’re looking for “asset allocation”. Your portfolio’s asset allocation is a simple snapshot of your investments—for example, a portfolio can be 50% and 50% bonds, or 50/50.

Read more: Jargon Hack: Asset Allocation

5/7
Quiz
 

What is the economic term used to describe the cost of giving up one thing or activity in favor of another?

Opportunity cost
Allocation
Alternative thingsywhatsit
Conservatism

The term is “opportunity cost”, which, again, means that you’re forgoing the “opportunity” of one thing in favor of another. Everything we do has an opportunity cost—you can go to work today, but you’re giving up staying at home and playing Xbox. Of course, if you lose your job, you’re giving up the ability to pay your rent.

Read more: Stash Explains: Why We Budget

6/7
Quiz
 

How much credit card debt does the average American household carry?

$7,500
$5,000
$17,000
$500

American households carry a lot of debt. Approximately $17,000 of it stems from credit card use.

Read more: Try These Tips to Get Out of Debt Now

7/7
Quiz
 

What company recently lost more stock market value in a single day than any other in history?

Toys R Us
Blockbuster Video
Twitter
Facebook

Facebook, following a poor second-quarter earnings report and saw a dramatic fall in its valuation stemming from the company’s forecasts of lower revenues and user growth in coming years.

 
Quiz
 

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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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