Test yourself on your financial knowledge

THIS week, something a little different: a 20-question quiz on how much you know about the world of money, including tax and investments. Most questions refer to the kinds of facts you'd pick up along your financial journey if you were diligent about managing your money and engaged regularly with a financial adviser. Here goes ...

- MARTIN HESSE

1. If you put R100 into an investment that offered interest of 10% a year and you reinvested the interest, how much would you have in total after 10 years (rounded to the closest rand)?

a) R110

b) R200

c) R223

d) R259

2. The great English mathematician and scientist Sir Isaac Newton lost a fortune in what speculative investment failure?

a) The Dutch tulip mania crash of 1637

b) The South Sea Bubble of 1720 c) The Wall Street Crash of 1929

d) The dot.com bubble of 2000

3. What is the repurchase, or repo, rate?

a) The interest rate you receive on a 12-month fixed deposit

b) The interest rate at which banks borrow from the Reserve Bank

c) The interest rate a bank charges its most creditworthy customers

d) The interest rate banks charge on property repossessions

4. Which of these types of credit would typically have the lowest interest rate?

a) A personal loan

b) A car finance agreement

c) A mortgage loan on a property

d) A credit agreement on a lounge suite

5. What is a testamentary trust?

a) A fund for widows and orphans

b) A family trust you establish during your lifetime

c) A trust established through your will

d) A type of unit trust fund

6. Which regulatory body regulates financial advisers?

a) Department of Trade and Industry

b) SA Reserve Bank