This quiz works best with JavaScript enabled. Home > Economics > Saving > Investing > Saving And Investing – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Saving And Investing Quiz 13 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What does the "t" represent in the interest formulas? A) Time in months. B) Time in years. C) Time in days. D) None of above. Show Answer Correct Answer: B) Time in years. 2. Plans that take a year or more to accomplish. A) Long-Term Goals. B) Short-Term Goals. C) Long-Term Goats. D) Long-Term Golfs. Show Answer Correct Answer: A) Long-Term Goals. 3. If you have a low tolerance for risk, you would most likely invest your money in A) Junk bonds. B) Corporate bonds. C) Government bonds. D) Stocks. Show Answer Correct Answer: C) Government bonds. 4. Stocks and bonds are similar in that both A) Have relatively high levels of risk. B) Provide ownership in a business. C) Have a guaranteed rate of return. D) Are tied to the rate of inflation. Show Answer Correct Answer: A) Have relatively high levels of risk. 5. In relation to other options, how liquid is a savings account? A) More liquid than cash. B) Less liquid than mutual funds. C) More liquid than a certificate of deposit. D) More liquid than a checking account. Show Answer Correct Answer: C) More liquid than a certificate of deposit. 6. Which one of the following saving instruments is not insured by the federal government? A) Money market mutual funds. B) Bank savings accounts. C) Credit union savings accounts. D) Bank certificates of deposit (CDs). Show Answer Correct Answer: A) Money market mutual funds. 7. When should a person start saving? A) Age 30. B) Age 18. C) Age 24. D) As soon as possible. Show Answer Correct Answer: D) As soon as possible. 8. Marcus has received a $ 20, 000 gift for graduating high school, and he wants to invest is money in the stock market. Which of the following would NOT be able to help him? A) A financial advisor. B) Real estate agents. C) Websites such as e-Trade or Vanguard. D) A stockbroker. Show Answer Correct Answer: B) Real estate agents. 9. Identify the investment:-insured by the FDIC-earns higher interest than a traditional savings account-requires a higher balance than a traditional savings account A) ETF. B) Stocks. C) Bonds. D) Money market account. Show Answer Correct Answer: D) Money market account. 10. The percentage rate paid on money invested or saved. A) Rate of Return. B) Trade-Off. C) Capital Gains. D) Risk. Show Answer Correct Answer: A) Rate of Return. 11. The term used to describe how quickly an asset can be turned into cash. A) Accessibility. B) Solidity. C) Trade-Off. D) Liquidity. Show Answer Correct Answer: D) Liquidity. 12. Issued by the federal government as a way of borrowing money. Purchase at half value and redeem at full value. A) CDs. B) T-Bills. C) Savings Bonds. D) Savings Accounts. Show Answer Correct Answer: C) Savings Bonds. 13. Deposits that state the amount of the deposit, maturity, and rate of interest A) Savings Accounts. B) Savings Bonds. C) Stocks. D) Certificate of Deposits. Show Answer Correct Answer: D) Certificate of Deposits. 14. Risk that the price of an investment will go down A) Investment risk. B) Inflation risk. C) Market price risk. D) Liquidity risk. Show Answer Correct Answer: C) Market price risk. 15. Which of the following savings or investing tools would go with "Protection" ? A) Insurance. B) Certificate of deposit. C) Real estate. D) Stocks. Show Answer Correct Answer: A) Insurance. 16. Which of the following is true with regard to gross pay and net pay? A) Net pay is gross pay minus savings. B) Gross pay is usually less than net pay. C) Net pay is gross pay minus deductions. D) Net pay is gross pay plus Social Security contributions. Show Answer Correct Answer: C) Net pay is gross pay minus deductions. 17. The financial agency that insures bank deposits is ..... Sometimes it is referred to as the F D I C 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. 18. This type of investment option is essentially an IOU with a set of interest rate.The corporation/government promises to pay the buyer a certin amount of money in the end A) Bond. B) Money market account. C) Certificate of deposit. D) Stock. Show Answer Correct Answer: A) Bond. 19. Which example is an investment commodity? A) Shares in a company. B) Microfinancing. C) A rare painting. D) Steel. Show Answer Correct Answer: D) Steel. 20. Which of the following is a correct statement about mutual funds? A) It is made up of a pool of funds collected from many investors. B) It is managed by investors. C) It is more risky than individual stocks and bonds. D) It puts assets together into one sercurity. Show Answer Correct Answer: A) It is made up of a pool of funds collected from many investors. 21. Person or firm that charges a fee or commission for executing buy and sell orders submitted by an investor. A) Financial adviser. B) Broker. C) Principal. D) None of above. Show Answer Correct Answer: B) Broker. 22. This is a person that is a go between for stock buyers and sellers. A) Buyer. B) Banker. C) Broker. D) Investor. Show Answer Correct Answer: C) Broker. 23. All of the following are ways to earn money as a stockholder EXCEPT: A) Getting dividends. B) Selling the stock at a lower value. C) Stock splits. D) Selling the stock at a higher value. Show Answer Correct Answer: B) Selling the stock at a lower value. 24. A physical substance, such as food, grains, ad metals, which is purchased with the idea that it can be sold at a future date at a much higher price. A) Commodities. B) Liabilities. C) Dividends. D) Collectibles. Show Answer Correct Answer: A) Commodities. 25. Pool of money managed by an investment company/ professional and invested in multiple companies. A) Mutual Fund. B) Stock Market. C) Money Market Account. D) Investment. Show Answer Correct Answer: A) Mutual Fund. 26. A comparison of interest rates charged by different credit cards is best done by comparing the A) Annual percentage yield (APY). B) Discounted present value. C) Compound rate of return. D) Annual percentage rate (APR). Show Answer Correct Answer: D) Annual percentage rate (APR). 27. Identify the investment:-insured by the FDIC-lowest interest rate of all investments-in most cases, you can make up to 3 withdrawals per month A) CDs. B) Traditional savings accounts. C) Money market. D) ETFs. Show Answer Correct Answer: B) Traditional savings accounts. 28. A savings tool purchased for 50% of the face value from the government is a A) Savings Bond. B) Checking Account. C) Certificate of Deposit (CD). D) Savings Account. Show Answer Correct Answer: A) Savings Bond. 29. Which of the following is NOT a purpose of investing money as stated in the segment A) To beat inflation. B) To guarantee future financial stability. C) To make money. D) To obtain high interest rates. Show Answer Correct Answer: D) To obtain high interest rates. 30. Which of the following is NOT a recommended strategy when investing in stocks? A) Avoid investing solely in individual stocks. B) Sell your stocks when the market is going down. C) Hold onto your stocks, and don't sell them even when the market goes down. D) Buy when the price is low. Show Answer Correct Answer: B) Sell your stocks when the market is going down. ← 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