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Fund Quiz 2, 25 questions about your Permanent Fund

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These sites can help you with the quiz:
Alaska Permanent Fund      State of Alaska     Banking and investment for kids

1. How does the Alaska Permanent Fund Corporation maximize the value of the Permanent Fund?

A By making prudent, long-term investments in a diversified portfolio
B By keeping the Fund in the bank earning a steady,dependable rate of interest
C By investing most of the Fund in promising high-tech stocks and hedge funds

2. What is the job of the Alaska Permanent Fund Corporation?

A To tell the Governor how to invest the Permanent Fund
B To give out dividends every year to all qualified Alaskans
C To manage the Permanent Fund investments

3. Who are the beneficiaries of the Permanent Fund?

A People born in Alaska before 1974
B People who fill out their dividend applications correctly
C Current and future generations of Alaskans

4. Which scenario is likely to happen in Alaska's future?
A Alaska's oil revenues will decline because oil is a non-renewable resource
B Permanent Fund income increases as the amount of assets under investment increases
C Both of the above

5. What are the part/s of the Permanent Fund?
A There is only one part of the Fund: the principal, which cannot be spent.
B The Permanent Fund is comprised of 100% earnings from investments
C The principal and the earnings reserve

6. Who decides how to spend Permanent Fund earnings?
A The Legislature
B The voters, in a special election
C The Permanent Fund Board of Trustees

7. How does money get into the Permanent Fund principal?
A Occasionally, the Legislature puts money from the Fund earnings into Fund principal.
B Every year, the Legislature adds money from Fund earnings into Fund principal to offset inflation.
C From oil revenue the state receives
D If the value of Fund investments increases, that increase goes into principal
E All of the above

8. How does money get into the Permanent Fund earnings?
A Interest and profits from sales are earned on bond investments
B Dividends and profits from sales are earned on stock investments
C Rent and profits from sales are earned on real estate investments
D All of the above

9. Who administers the Permanent Fund Dividend program?
A The Alaska Permanent Fund Corporation
B The Dividend Division in the Department of Revenue
C A board comprised of concerned citizens

10. Around how much money is in the Permanent Fund principal?
A between $5 - $10 billion currently
B between $25 - $35 billion currently
C None; it is all paid out in dividends each year

11. Around how much money is in the entire Permanent Fund?
A There is no way of knowing this figure
B Between $30 billion and $40 billion currently
C $597,340,000,000,000,000.00

12. Which is the Fund's largest asset class?
A Stocks
B Real estate
C Bonds
D Alternative investments, such as hedge funds

13. What has Permanent Fund Board of Trustees proposed to protect, improve and modernize the Fund?
A The Mackie Plan
B Alternative investments, such as hedge funds
C Percent of Market Value (POMV) spending limit

14. How large will the Fund be in 2020 without inflation proofing?
A About half as large as it would be with inflation proofing
B Much, much larger
C Exactly the same; inflation proofing does not affect the size of the Fund

15. Which will be most likely to add the most money to Fund principal in the future?
A Oil/mineral revenues
B Annual inflation proofing of the oil/mineral revenue deposits into the fund
C Special appropriations from the Legislature into the fund
D Appreciation of fund investments

16. Where does the Legislature get money for special appropriations to Fund principal?
A By selling state surplus equiptment
B From any earnings reserve money left over after dividends and inflation proofing
C From the federal government

17. If an Alaskan had collected every PFD since 1982, about how much money would she or he have received after the 2006 dividend?
A $26,000
B $260,000
C $2,600

18. Who or what determines how big the dividends will be each year?
A The Permanent Fund Board of Trustees
B The Alaska Constitution
C A formula in state law, which was passed by the State Legislature

19. Why does the Legislature inflation proof the Fund?
A To protect the purchasing power of the Fund
B To prevent the Fund from inflating too fast
C To prove that inflation exists

20. What is the earnings reserve account?
A Part of the Constitutional Budget Reserve
B The part of the Permanent Fund that is not principal
C The part of the Fund that cannot be spent

21. Who really owns the Permanent Fund?
A A group of private investors in New York City
B The state of Alaska
C The Trustees of the Alaska Permanent Fund Corporation

22. Where is the Alaska Permanent Fund Corporation located?
A It is headquartered in Anchorage but has offices around the world.
B On Wall Street
C In Alaska's capital city, Juneau

23. How many states in the U.S. issue an annual dividend check to residents?
A Alaska only
B Texas, Oklahoma, Alaska, and Louisiana - the four "big oil" states
C All states do; but the money doesn't necessarily come from oil - it can come from farming, for example

24. What state's residents have the lowest overall taxes?
A Connecticut
B Alaska
C Vermont

25. How can students find out more about the Permanent Fund?
A Bookmark www.apfc.org
B Watch the news on TV, listen to radio news, read the newspaper
C Go to a meeting of the Fund's Board of Trustees
D Visit the Alaska Permanent Fund Corporation office with my class
E All of the above