Are You as Smart as a CCS senior?

 

Students in Mr. Turner's senior economics class were recently tested on their knowledge of real world business terms and how some may apply to situations that every adult faces.

How would YOU do on the exam?

 

Forward your answers to sclerici@charlestoncollegiate.org for a chance to win a free week of lunches from Schoolhouse Fare.  The entry with the most correct answers wins!

 

1)      What is the significance of the "price to earnings" ratio?

2)      How do you determine the value of a privately traded corporation?

3)      What are "points"?

4)      What is a "tax exempt" bond?  Who issues them? Why and how may they be attractive to an investor?

5)      If you were going out today to buy a car, what are the steps you would go through and why? What types of expenses would you face? Would you purchase an extended warranty?

6)      What is the difference between stocks and bonds?

7)      What is the savings significance of compounded interest and how does it work?

8)      I was thinking of buying some real estate for investment - what type should I buy and why?  What are the risks/rewards/benefits?

9)      Renting an apartment or buying a house?  What are the benefits and drawbacks of each?  What costs may be associated with buying? What is a lease and what does it do?

10)   How does an auto insurance company factor your rates?

 

Extra Credit: What are the three types of investments that the Treasury Department sells and what are the differences between them?