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Money, money, money. Everyone loves to talk about it, find new ways to make more of it, and spend it. But how many of us really know the ins and outs of how to effectively save and invest money? This quiz was designed by the editors at Black Enterprise to test your financial I.Q.

1. What is a mutual fund? a. An investment portfolio managed by a group of friends or associates b. A pool of money used to fund charitable causes c. An investment portfolio managed by a professional investment company

2. Corporate stocks and corporate bonds are one and the same. a. True b. False

3. Your net worth is a. the difference between your assets and your liabilities b. all your worldly goods c. your entire stock portfolio

4. Your account balance and available balance are always the same amount. a. True b. False

5. If your bank interest is compounded annually and you deposit $100 in your account at 10%, how much would you have at the end of two years? a. $110 b. $101 c. $121

6. Which savings/investment instrument is not federally insured? a. Passbook savings account b. NOW checking account c. Mutual fund

7. What is the minimum amount you can purchase a Treasury bill for? a. $500 b. $3,000 c. $10,000

8. The 401(k) plan is a. an employee contribution pension plan b. a credit union c. an insurance plan

9. The FDIC will insure your savings in accounts under one name up to what amount? a. $100,000 b. $10,000 c. $50,000

10. Which type of mutual fund charges an initial sales commission? a. Load fund b. No-load fund

11. An option is a contract to buy or sell shares of stock at a set price within a specific period of time. a. 200 b. 50 c. 100

12. During a bull market the price of common stock generally rises over an extended period of time. a. True b. False

13. One warning sign that you are overextended in terms of debt is that you are spending more than of your net take-home pay on debt servicing. a. 10% b. 15% c. 20%

14. Your property is underinsured if your insurance is less than of the total replacement value. a. 80% b. 90% c. 75%

15. Is the tax on the interest earned on zero-coupon bonds always deferred? a. Yes b. No

16. In terms of tax savings, is it better to pay points on your mortgage at the time of sale or prorate them over the life of the loan? a. Pay up front b. Prorate payment over the life of the loan

17. How does the interest rate on a CD compare with that of a passbook savings account? a. Higher b. Lower c. The same

18. Disposable income is personal income a. after all taxes b. after all fixed expenses c. after all taxes and fixed expenses

19. Which type of health insurance covers hospital and ancillary costs? a. Blue Cross b. Blue Shield

20. Which of these two stocks offers shareholders voting privileges at all stockholders meetings? a. Common stock b. Preferred stock

21. The Dow Jones Industrial Average is the most commonly used index to judge the performance of the stock market based on prices of shares traded on the a. American Stock Exchange b. Chicago Board Options Exchange c. New York Stock Exchange

22. Which of the following savings plans are designed to protect your money from heavy taxation until withdrawal? a. Uniform Gifts to Minors Account b. IRAs c. Both of the above

23. Does term life insurance offer a savings plan? a. Yes b. No

24. The terms “credit card” and “charge card” mean virtually the same thing. a. True b. False

25. Are handwritten and signed wills valid in all states? a. Yes b. No

Click here for the answers.