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Members Only > AMA Member Challenge Archive
Answers to AMA Member Challenge
December 2007
1. We all know that Black Friday is the frenzied day after Thanksgiving that signals the start of holiday shopping. Recently, we’ve been hearing about online retailers’ Cyber Monday, which occurs the Monday after which holiday?
- Memorial Day
- Labor Day
- Thanksgiving
- New Year’s
Correct answer: Thanksgiving. While Black Friday is when consumers head off to brick and mortar retail establishments to take advantage of pre-holiday sales, when they return to work on the Monday after Turkey Day they turn their attention to e-tailers’ bargains.
2. Amazon.com’s latest innovation is a portable electronic reading device that weighs just over 10 ounces and can store around 200 books. What’s it called?
- Readster
- Kindle
- Book Worm
- Lire-ique
Correct answer: Kindle. A Kindle owner can download books from an online library of over 90,000 titles at a cost of around $10 each. The device currently sells for $399.
3. In contrast to many investment banks, Goldman Sachs posted record profits in the third quarter, thanks in major part to its timely decision to reduce its investments in what?
Mortgages
- Mortgages
- Commodities
- Mutual funds
- IPOs
Correct answer: Mortgages According to the New York Times, late last year Goldman’s CFO advised the firm to “reduce its stockpile of mortgages and mortgage-related securities and buy expensive insurance as protection against further losses.” While three banking CEOs have been forced to resign due to the credit crisis, Goldman CEO Lloyd C. Blankfein’s compensation is expected to soar well beyond the $54.3 million he received last year.
4. Name the American luxury car manufacturer that received Motor Trend magazine’s first “Car of the Year” award in 1949 as well as the 2008 award for its new “CTS” model.
- Lexus
- Chrysler
- Cadillac
- Ford
Correct answer: Cadillac Until 1999, only American cars were eligible for the award. Car of the Year contenders must be new or totally redesigned within the prior year. Editor’s note: Cadillac was named for Antoine de La Mothe, sieur de Cadillac, founder of Detroit.
5. Instead of a gift card, you may want to give Aunt Martha some cold, hard cash this holiday season. According to Consumer Reports, what percentage of last year’s gift card recipients still haven’t used at least one of their cards?
Correct answer: 27% According to Consumer Reports, 62% of consumers will buy gift cards in 2008, pushing sales to more than $100 billion. Consumers should be especially wary of bank-issued gift cards, which may have purchase, processing, and/or maintenance fees, as well as expiration dates.
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