This quiz works best with JavaScript enabled. Home > Economics > Saving > Investing > Saving And Investing – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Saving And Investing Quiz 10 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Dividends are a characteristic of what investment tool? A) Mutual Funds. B) Stocks. C) Real Estate. D) Bonds. Show Answer Correct Answer: B) Stocks. 2. All are benefits of saving, except A) Safe, reliable, convenient. B) Earns a higher return of interest. C) Earns a small amount of interest. D) Insured by the FDIC. Show Answer Correct Answer: B) Earns a higher return of interest. 3. In the formula to calculate simple interest, what does the p stand for? A) Patience. B) Price. C) Pi. D) Principal. Show Answer Correct Answer: D) Principal. 4. The financial agency that sets monetary policy is ..... A) The Federal Depository Insurance Corporation. B) The Federal Trade Commission. C) The Federal Reserve. D) None of above. Show Answer Correct Answer: C) The Federal Reserve. 5. Saving money over time for a large purchase is a(n): A) Emergency fund. B) Personal finance. C) Sinking fund. D) Interest fund. Show Answer Correct Answer: C) Sinking fund. 6. Which of the following factors affects a monthly mortgage payment? A) The size of the down payment. B) The size of the home. C) The location of the home. D) The location of the bank. Show Answer Correct Answer: A) The size of the down payment. 7. In which year was the FDIC created A) 1945. B) 1933. C) 1956. D) 1968. Show Answer Correct Answer: B) 1933. 8. What is a collection of investments called? A) Savings book. B) Investment plan. C) Portfolio. D) Piggy bank. Show Answer Correct Answer: C) Portfolio. 9. Money functions as A) A medium of exchange. B) A standard of value. C) A store of value. D) All of the above. Show Answer Correct Answer: D) All of the above. 10. Percentage rate used to calculate interest A) Compound interest. B) Interest. C) Interest rate. D) Consumption. Show Answer Correct Answer: C) Interest rate. 11. A fee paid for the use of money. A) Interest. B) Internet. C) Invest. D) Stock. Show Answer Correct Answer: A) Interest. 12. The definition of M1 includes A) Investments such as stocks and bonds. B) Credit-card balances and mortgage debts. C) The gold and silver that backs the money supply. D) Currency, checkable deposits, and traveler's checks. Show Answer Correct Answer: D) Currency, checkable deposits, and traveler's checks. 13. When it comes to personal savings, what does the acronym PYF stand for? A) Prepare Your Future. B) Prepay Your Finances. C) Pay Your Friends. D) Pay Yourself First. Show Answer Correct Answer: D) Pay Yourself First. 14. Alicia Martin's savings account has a principal of $ 1, 200. It earns 6% interest. How much simple interest will she earn after 9 months, if the interest is figured every three months? A) $ 36.00. B) $ 1, 236.27. C) $ 54.00. D) $ 1, 254.81. Show Answer Correct Answer: C) $ 54.00. 15. Cash set aside to cover the cost of unexpected events A) Interest. B) Savings. C) Saving. D) Emergency savings. Show Answer Correct Answer: D) Emergency savings. 16. The amount of money you earn compared to the amount of money you invest A) Term. B) Equity investment. C) Return on investment (ROI). D) Fixed income statements. Show Answer Correct Answer: C) Return on investment (ROI). 17. Which of the following is a risk free investment? A) Money Market Accounts. B) Corporate bonds. C) Stocks. D) Real estate. Show Answer Correct Answer: A) Money Market Accounts. 18. Which of the following investment tools is considered to be a speculative investment? A) Certificate of Deposit. B) Savings Bond. C) Futures. D) Mutual Fund. Show Answer Correct Answer: C) Futures. 19. The value of shares issued by a company is known as which of the following? A) Stocks. B) Equity. C) Collateral. D) Bonds. Show Answer Correct Answer: B) Equity. 20. The higher the risk the, ..... the reward A) Higher. B) Lower. C) There is no relationship between risk and reward. D) All of the above. Show Answer Correct Answer: A) Higher. 21. An account at a depository institution that is designed to hold money not spent on current consumption A) Savings account. B) Savings tools. C) Depository institution. D) Checking account. Show Answer Correct Answer: A) Savings account. 22. The most common relationship between risk and return in investing can be stated as: A) Higher risk indicates lower return. B) Higher risk indicates higher return. C) Lower risk indicates higher return. D) No relationship exists between risk and return. Show Answer Correct Answer: B) Higher risk indicates higher return. 23. The benefit of diversification in your investments is: A) Reduced risk. B) Increased return. C) Increased risk. D) None of above. Show Answer Correct Answer: A) Reduced risk. 24. Examples of investing include all of the following except A) Placing money in a 529 account. B) Purchasing real estate. C) Putting money under your mattress. D) Buying stocks. Show Answer Correct Answer: C) Putting money under your mattress. 25. Professionally managed, diversified investment that pools resources of many investors A) Saving account. B) Treasury bonds. C) Stock index. D) Mutual fund. Show Answer Correct Answer: D) Mutual fund. 26. The financial agency that insures bank deposits is ..... A) The Federal Depository Insurance Corporation. B) The Federal Trade Commission. C) The Federal Reserve. D) None of above. Show Answer Correct Answer: A) The Federal Depository Insurance Corporation. 27. At your age, a fully funded emergency fund should be: A) $ 100. B) $ 1, 000. C) $ 5, 000. D) $ 500. Show Answer Correct Answer: D) $ 500. 28. Which type of investment income happens when an investor sells ownership in an equity investment that's gained value? A) Dividends. B) Equity gains. C) Capital gains. D) Interest. Show Answer Correct Answer: C) Capital gains. 29. Tax Defferal is ..... A) A no tax rate. B) A type of investment risk. C) A lower tax rate. D) Not a tax advantage. Show Answer Correct Answer: C) A lower tax rate. 30. Saving money because of a concern for losing ones' job is an example of saving for: A) An emergency. B) A goal. C) Retirement. D) A particular purchase. Show Answer Correct Answer: A) An emergency. ← PreviousNext →Related QuizzesSaving QuizzesEconomics QuizzesSaving And Investing Quiz 1Saving And Investing Quiz 2Saving And Investing Quiz 3Saving And Investing Quiz 4Saving And Investing Quiz 5Saving And Investing Quiz 6Saving And Investing Quiz 7Saving And Investing Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books