Building a Billion: Do you know how to make serious money?

By: Staff

4 Min Quiz

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About This Quiz

Some people have a knack for making money. Everything they touch seems to turn to gold, silver or oil. Are you one of them? Could you amass a billion dollars or perhaps a tad smaller amount?

Let’s start with some basic terminology. What’s the difference between a stock and a bond?

When you buy a bond, you’re effectively lending the company cash. When you purchase stock, you’re buying a piece of that company.


Which one of these three careers had the best chance of getting you in the 2013 billionaire’s club?

According to Forbes, becoming a fashionista is a good way to strike it rich. In fact, 146 of the world’s billionaires in 2013 are in the fashion and retail industry.


What’s the best way to strike it rich in Asia?

Selling real estate is the No. 1 way to become a billionaire in Asia.


Which of the following annual household income levels fits the definition of “rich” for most Americans?

Most Americans told Gallup in 2011 that they consider a household income of $122,000 to be the threshold for being considered rich.


How many households in the U.S. earn $1 million or more?

According to the Tax Policy Center, 433,000, or 0.3 percent of all U.S. households, broke the $1 million threshold in 2011.


Why do 40 percent of millionaires feel they are not wealthy?

Four out of 10 millionaires interviewed told Fidelity that they didn’t feel rich unless they had $7.5 million in the bank. C’mon guys, really?


Which form of legalized gambling is least likely to make you wealthy?

Bloomberg News says state-run lotteries “have the worst odds of any form of legal gambling in America.” And yes, you do stand a better chance of being hit by lightning.


What do you think is the top business to be in if you want to become a billionaire?

As they say, they’re not making any more land.


What does Warren Buffett say is the best way to make oodles of cash?

Don’t spend the money you make, Buffett says. Instead, reinvest your profits.


Which of the following paths is the best one for becoming a millionaire?

With all due respect to Bernie Madoff, about two-thirds of millionaires are self-employed, and 75 percent of them are entrepreneurs.


What do some experts say is one component of amassing wealth?

Most millionaires don’t drive fancy cars or wear expensive watches. According to experts, most wealthy Americans live below their means.


Which of the following small businesses could be a good investment?

While all three could make a good investment, our friends at Forbes say emergency health centers have a 15 percent pretax margin.


Which of the following countries had the most billionaires in 2013?

Out of a total population of more than 307 million, the United States led the world with nearly 442 billionaires in 2013.


OK, but which region boasted the most billionaires in the construction and engineering business?

In 2013, nine billionaires made their fortunes building things in the Middle East and Africa, more than the U.S. and Europe.


Which investment do you think makes more sense in the 2013 economic climate?

Experts say investing in silver makes more sense than investing in gold in 2013 because proportionally, silver can surge higher than gold, the prices of which are abnormally high.


What’s the best definition for a “speculator?”

A speculator is a sophisticated, risk-taking investor who will anticipate future price movements in the hopes of making a big windfall.


What can happen if you buy a company’s stock on margin?

Buying stocks on margin means that you borrowed a portion of the money from a brokerage firm to make the purchase. As a result, you risk losing not only your entire investment, but also what you borrowed.


Which type of bond is considered to be the safest?

Issued by the federal government, a treasury bond’s worth is guaranteed by the U.S. government.


Which of the following statements is true?

When interest rates fall, bond prices rise, and vice versa.


What type of company would issue a “junk bond?”

Companies with poor credit ratings issue “junk bonds” because the risk that these companies will default on their interest payments, or even go bankrupt, is great.


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