BigFatQuiz #2 is now available here!

A couple of weeks ago we sent out a quiz to our subscribers. It was a simple quiz that required a True/False response to ten questions. For the benefit of all our readers, we will reproduce the entire set of questions and answers here.

1. A company’s stock is trading at $12. Its dividend payout is $0.6. The PE Ratio of the company is 20. True/False

False. PE ratio is the company’s share price to its earnings per share. Dividend does not play a direct role in the determination of the PE Ratio. Read more about financial ratios here.

2. Quantitative Easing involves pumping huge amounts of cash into the economy by the government. As a result the currency of the country strengthens and increases in value. True/False

False. QE involves pumping huge amounts of cash into the economy by the government that is ...