This quiz works best with JavaScript enabled. Home > Economics > Saving > Investing > Saving And Investing – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Saving And Investing Quiz 14 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Savings is best defined as the: A) Amount remaining after current wants and needs have been satisfied. B) Investment opportunities which yield a high interest rate. C) Portion of current income not spent on consumption. D) Purchase of assets with the goal of increasing future income. Show Answer Correct Answer: C) Portion of current income not spent on consumption. 2. Which of the following is NOT a type of savings account? A) Money market account. B) Traditional savings account. C) Certificate of deposit. D) Mutual fund. Show Answer Correct Answer: D) Mutual fund. 3. Corps and governments can sell these and must be repaid at maturity date A) IRA. B) Mutual funds. C) Bonds. D) Stock. Show Answer Correct Answer: C) Bonds. 4. Which of the following is NOT a common reason that teens today are saving their money? A) Saving for retirement. B) Saving for college. C) Saving for a car. D) Saving for a trip at graduation. Show Answer Correct Answer: A) Saving for retirement. 5. The danger that money won't be worth as much in the future as it is today A) Rent. B) Bond. C) Inflation. D) Inflation risk. Show Answer Correct Answer: D) Inflation risk. 6. A share of ownership in a company A) Stock. B) Return. C) Bond. D) Stock exchange. Show Answer Correct Answer: A) Stock. 7. To put money in the bank A) Balance. B) Withdraw. C) Overdraw. D) Deposit. Show Answer Correct Answer: D) Deposit. 8. An entrepreneur who needs financial help in buying new equipment for her thriving bakery might take out a A) Commercial loan. B) Consumer loan. C) Mortgage loan. D) Certificate of deposit. Show Answer Correct Answer: A) Commercial loan. 9. You need a savings tool that is liquid and accessible, which one should you choose? A) Certificate of Deposit. B) Checking account. C) Money Market deposit account. D) All three are correct. Show Answer Correct Answer: B) Checking account. 10. Accumulation of excess funds by intentionally spending less than you earn A) Saving. B) Savings. C) Time value of money. D) Emergency savings. Show Answer Correct Answer: A) Saving. 11. Which is a feature of a money market deposit account? A) No minimum balance requirements. B) The money must remain in the account for a specific period of time. C) Unlimited transactions every month. D) Tiered interest rates. Show Answer Correct Answer: D) Tiered interest rates. 12. What piece of information is most helpful when you're comparing investments? A) The ROI dollar amounts. B) The initial investment amounts. C) The ROI percentage. D) The total return dollar amounts. Show Answer Correct Answer: C) The ROI percentage. 13. Which of the following is a long term savings/investing option? A) Money Market Account. B) Certificate of Deposit. C) Savings Account. D) Mutual Funds. Show Answer Correct Answer: D) Mutual Funds. 14. Provides information and advice as well as buys and sells stock for their customers. A) Banker. B) Stock Broker. C) Full-Service Broker. D) Stock Market. Show Answer Correct Answer: C) Full-Service Broker. 15. Portion of income not spent on current expenses A) Certificate of Deposit. B) Savings. C) Capital Gains. D) Maturity Date. Show Answer Correct Answer: B) Savings. 16. Misty just got her first job and is setting aside as much as she can to buy a car. If she wants to have $ 3, 000 for a down payment in two years, how much will she need to save each month? A) $ 360. B) $ 720. C) $ 250. D) $ 125. Show Answer Correct Answer: D) $ 125. 17. Kayla is considering whether to open a savings account or buy stock. Her financial advisor tells her that investing involves ....., but will help her money grow. A) A down payment. B) Risk. C) Taxes. D) None of above. Show Answer Correct Answer: B) Risk. 18. An account to hold money not spent on current monthly expenses. A) Savings Account. B) Checking Account. C) Stock. D) Investment. Show Answer Correct Answer: A) Savings Account. 19. Which of the following allows farmers to capitalize in farm science A) Agricultural stocks. B) Farmland. C) Agricultural exchange-trade fund. D) Biotech investments. Show Answer Correct Answer: D) Biotech investments. 20. Fill in the correct terms to complete the description of Rebecca going through insurance claims process.Her children will also receive the same until they ..... A) Graduate from high school. B) Retire. C) Become employed. D) None of above. Show Answer Correct Answer: A) Graduate from high school. 21. You should start saving for retirement A) When you get your first job. B) When you reach age 65. C) When you get married. D) When you reach age 50. Show Answer Correct Answer: A) When you get your first job. 22. Investment taken out of gross income (before taxes) or growing w/o taxes A) Bond. B) Tax-deferred. C) Tax-obligated. D) Stock. Show Answer Correct Answer: B) Tax-deferred. 23. Money earned on the original principal and on previously earned interest is referred to as A) Future value. B) Simple interest. C) Present value. D) Compound interest. Show Answer Correct Answer: D) Compound interest. 24. What is compounding interest? A) Interest gained only on the principal of an account. B) Interest that doubles the principal of an account. C) Interest that's added to the principal of an account. D) Interest that's not calculated on a regular basis. Show Answer Correct Answer: C) Interest that's added to the principal of an account. 25. The type of risk you will not lose your money. A) Fraud Risk. B) Market Risk. C) Liquidity Risk. D) Financial Risk. Show Answer Correct Answer: D) Financial Risk. 26. Earning interest on interest A) Do it yourself. B) Interest. C) Compound interest. D) Interest rate. Show Answer Correct Answer: C) Compound interest. 27. Spreading out of investments among several different types of accounts to lower overall risk A) Mutual funds. B) Diversification. C) Distribution. D) Maturity. Show Answer Correct Answer: B) Diversification. 28. Setting aside income for a period of time so that it can be used later A) Interest. B) Maturity. C) Saving. D) Broker. Show Answer Correct Answer: C) Saving. 29. People who have invested in a corporation and own some of its stock A) Stockholders. B) Stock Exchangers. C) Brokers. D) Stockers. Show Answer Correct Answer: A) Stockholders. 30. An individual retirement account that is not sponsored by an employer. A) Roth Stock. B) IRA. C) 401K. D) Mutual Fund. Show Answer Correct Answer: B) IRA. ← 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