This quiz works best with JavaScript enabled. Home > Economics > Saving > Investing > Saving And Investing – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Saving And Investing Quiz 11 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which policy is a way the SEC protects investors? A) Requiring companies to disclose financial information. B) Helping investors diversify their portfolios. C) Guaranteeing the value of certain stocks. D) Insuring the amounts of people's investments. Show Answer Correct Answer: A) Requiring companies to disclose financial information. 2. Identify the investment:-many stocks are included in this type of investment-considered the safest way to invest in the stock market A) Dividend. B) Commodities. C) ETFs. D) Bonds. Show Answer Correct Answer: C) ETFs. 3. This type of stock is less risky, is nonvoting, and pays fixed dividends, no matter how the company performs A) Common Stock. B) Income Stock. C) Preferred Stock. D) Growth Stock. Show Answer Correct Answer: C) Preferred Stock. 4. Simple Interest is ..... A) Interest paid on both the principal and the already earned interest. B) The interest paid on the principal alone. C) A fixed charge for borrowing money; usually a percentage of the amount borrowed. D) The money originally invested or loaned. Show Answer Correct Answer: B) The interest paid on the principal alone. 5. When should you start putting money away for retirement? A) As soon as possible. B) When you are 50. C) Whenever you feel like it. D) Never. Show Answer Correct Answer: A) As soon as possible. 6. Knowing how much you need to save, Having a plan, and setting goals are the keys to ..... A) Starting your own business. B) Financial Security. C) The Stock Market. D) Applying for a credit card. Show Answer Correct Answer: B) Financial Security. 7. Which portion would not be part of an investment portfolio? A) A savings account. B) Commodities fund. C) Equity investments in a company. D) A savings 529 plan. Show Answer Correct Answer: A) A savings account. 8. Which of the following involves restricting expenses and keeping the unspent money in one's own custody for the purpose of accumulating it? A) Investing. B) Saving. C) Evaluating. D) Compounding. Show Answer Correct Answer: B) Saving. 9. When it comes to saving money, what is a good rule of thumb? A) Keep most of your savings in your checking account. B) Put aside money for savings each month. C) Choose the savings account with the lowest interest rate. D) Putting anything you can't afford on your credit card. Show Answer Correct Answer: B) Put aside money for savings each month. 10. What is the purpose of a company issuing stock? A) To exempt the company from paying taxes. B) To increase the influence of the current owners of the company. C) To raise money that can be used to growth the company. D) To grow equity interests that encourage diversification. Show Answer Correct Answer: C) To raise money that can be used to growth the company. 11. When saving, an example of an emergency that one would save for would be: A) Health problems. B) Retirement. C) College. D) New car. Show Answer Correct Answer: A) Health problems. 12. Plans that take less than a year to accomplish. A) Short-Term Goats. B) Long-Term Goats. C) Long-Term Goals. D) Short-Term Goals. Show Answer Correct Answer: D) Short-Term Goals. 13. With the Rule of 72, how many years will it take to double my money? Check the correct figuring? A) 72 DIVIDED BY Interest rate. B) 72 DIVIDED by Years to double a sum of money = the Interest rate. C) Interest rate DIVIDED BY 72 = YEARS TO DOUBLE A SUM OF MONEY. D) None of above. Show Answer Correct Answer: A) 72 DIVIDED BY Interest rate. 14. The ability of an investment to generate earnings that can be reinvested to earn still more earnings is called A) Uniformity. B) Scarcity. C) Budgeting. D) Compounding. Show Answer Correct Answer: D) Compounding. 15. What is a benefit of having a money market deposit account, as well as a checking or savings account? A) Easy access to your money. B) Must be in the account for at least a year. C) Must wait until maturity to get your money. D) None of above. Show Answer Correct Answer: A) Easy access to your money. 16. A retirement plan found in nonprofit organizations such as churches, hospitals and schools. A) 403(b). B) 457. C) GIC. D) 401(k). Show Answer Correct Answer: A) 403(b). 17. Money is a medium of exchange, measure of value, and store of value these are examples of? A) Formerly used currencies. B) Federal reserve notes. C) Characteristics of money. D) Functions of money. Show Answer Correct Answer: D) Functions of money. 18. To use an online bank account you will need access to ..... A) The Internet. B) An ATM. C) A mobile phone. D) The high street branch. Show Answer Correct Answer: A) The Internet. 19. Which piece of information is typically included in a stock listing? A) The company's SEC registration credentials. B) The number of shares of stock sold in the previous year. C) The number of shares of stock sold in a previous day. D) The predicted price of the stock over the next year. Show Answer Correct Answer: C) The number of shares of stock sold in a previous day. 20. A strategy of setting aside money for saving before spending any money is known as A) The rule of thumb. B) Pay yourself first. C) Rule of 20. D) Time value of money. Show Answer Correct Answer: B) Pay yourself first. 21. What's a good target for the balance you should keep in your emergency fund? A) A month of living expenses. B) 5% of your annual income. C) Three to six months of living expenses. D) $ 500. Show Answer Correct Answer: C) Three to six months of living expenses. 22. Which is the best investment option for a person who wants to make a long-term, tax-free investment? A) Money market account. B) Roth IRA. C) Traditional IRA. D) 401(k). Show Answer Correct Answer: B) Roth IRA. 23. Which of the following investments is NOT in the Stock Market? A) ETFs. B) Individual stocks. C) Real estate. D) Mutual funds. Show Answer Correct Answer: C) Real estate. 24. What account pays low interest A) Money Market. B) Checking. C) Savings. D) COD. Show Answer Correct Answer: C) Savings. 25. In this type of market, investors are worried about the future and therefor will start selling stock, rather then buying A) Dog. B) Bull. C) Bear. D) Cat. Show Answer Correct Answer: C) Bear. 26. The measure of how long it takes your investment to double. A) Compound Interest. B) Rule of 72. C) Interest Rate. D) Simple Interest. Show Answer Correct Answer: B) Rule of 72. 27. Which of the following is a good investment option? A) Mutual funds. B) Futures. C) Gold. D) Viaticals. Show Answer Correct Answer: A) Mutual funds. 28. Price paid for using someone else's money A) Interest. B) Compound interest. C) Savings. D) Interest rate. Show Answer Correct Answer: A) Interest. 29. Tax exemption is ..... A) A no tax rate. B) A delayed payment method. C) The same a tax defferal. D) A type of investment. Show Answer Correct Answer: A) A no tax rate. 30. IOU issued by a company or federal gov't in exchange for a loan that will be repaid. A) Bond. B) Risk. C) Stock. D) Invest. Show Answer Correct Answer: A) Bond. ← 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