This quiz works best with JavaScript enabled. Home > Economics > Saving > Investing > Saving And Investing – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Saving And Investing Quiz 15 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which kind of interest allows your investment to grow exponentially? A) Simple interest. B) Double interest. C) Special interest. D) Compound interest. Show Answer Correct Answer: D) Compound interest. 2. A trading market where stock is bought and sold. A) Stock market. B) Sales market. C) Investment market. D) Farmer's market. Show Answer Correct Answer: A) Stock market. 3. A tax deferred retirement savings plan offered to employees by their employer. A) Savings Account. B) Dividend. C) IRA. D) 401 K. Show Answer Correct Answer: D) 401 K. 4. A regular cash payment from a company to its shareholders is called A) Interest. B) A Share. C) All of the above. D) Dividend. Show Answer Correct Answer: D) Dividend. 5. If your account is earning 6% interest, it will take ..... years for your money to double. A) 15. B) 10. C) 12. D) 22. Show Answer Correct Answer: C) 12. 6. Which of the following is a risk management technique which spreads assets into a portfolio with a wide variety of investments? A) Investment. B) Compounding. C) Appreciation. D) Diversification. Show Answer Correct Answer: D) Diversification. 7. In general, an investment that has a high risk of loss A) Has a higher potential reward. B) Commands a higher price for the initial investment. C) Has little chance of making a profit. D) Is insured by the FDIC. Show Answer Correct Answer: A) Has a higher potential reward. 8. How much of your deposit is insured? A) $ 250.00. B) $ 250, 000.00. C) $ 150, 000.00. D) $ 2, 050.00. Show Answer Correct Answer: B) $ 250, 000.00. 9. When society is experiencing inflation, A) Prices are higher. B) Prices are lower. C) Prices stay the same. D) All of the above. Show Answer Correct Answer: A) Prices are higher. 10. This is the most common form of retirement plan found in the private sector. It (for the most part) took the place of pension plans. A) 401k. B) IRA. C) UTMA. D) SEP IRA. Show Answer Correct Answer: A) 401k. 11. Investing is best defined as the: A) Amount remaining after current wants and needs have been satisfied. B) Savings 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: D) Purchase of assets with the goal of increasing future income. 12. A fee charged for the use of property or land A) Return. B) Risk. C) Rate of return. D) Rent. Show Answer Correct Answer: D) Rent. 13. When a goal has been set to save $ 100.00 a month for an emergency fund of $ 2000.00, giving up food from the vending machine to achieve that goal is the: A) Interest. B) Trade-off. C) Specific part of the SMART goal. D) Opportunity cost. Show Answer Correct Answer: B) Trade-off. 14. The SEC is a company that is responsible for enforcing laws concerning with trading stocks and bonds. What does SEC stand for? A) South Eastern Conference. B) Super Economy Company. C) Securities Exchange Commission. D) Security Economy Corporation. Show Answer Correct Answer: C) Securities Exchange Commission. 15. Facilitates the buying and selling of investments from a stock exchange A) Discount brokerage firm. B) Brokerage firm. C) Bond. D) Index. Show Answer Correct Answer: B) Brokerage firm. 16. Timothy has invested $ 1, 600 for college. What interest rate must Timothy earn for his investment to double in 8 years? A) 9%. B) 300%. C) 22%. D) .05%. Show Answer Correct Answer: A) 9%. 17. Bonds are "safer" than stocks A) True. B) False. C) Don't know. D) None of above. Show Answer Correct Answer: A) True. 18. Which of the following includes collateral? A) A secured loan. B) An unsecured loan. C) A provision loan. D) A reorganization loan. Show Answer Correct Answer: A) A secured loan. 19. How do you get the greatest possible return? A) Risk free investments. B) High risk investments. C) Low risk investments. D) Medium risk investments. Show Answer Correct Answer: B) High risk investments. 20. Which of the following is NOT a risk when investing in real estate? A) Real estate values may decrease. B) Tenants may not pay rent. C) Real estate values may increase. D) Tenants may destroy your property. Show Answer Correct Answer: C) Real estate values may increase. 21. Identify the investment:-risky-ownership in a corporation-pays dividends-potential for reward is high A) Commodities. B) Bonds. C) Real estate. D) Stocks. Show Answer Correct Answer: D) Stocks. 22. Which of the following has a mission to ensure a safe, sound and dependable sources of credit and related services for agriculture and rural Amercia? A) FARRM. B) FCA. C) FICA. D) FDA. Show Answer Correct Answer: B) FCA. 23. An interest earning savings tool allowing restricted access to the funds deposited is called a A) Savings Account. B) Investment Philosophy. C) Certificate of Deposit (CD). D) Checking Account. Show Answer Correct Answer: C) Certificate of Deposit (CD). 24. Sara is looking for an investment that is structured to have tax benefits. She should look for information on: A) Tax-advantaged investments. B) Index funds. C) Tax-rated bonds. D) Speculative investments. Show Answer Correct Answer: A) Tax-advantaged investments. 25. Accounts offered by depository institutions whose main purpose is to help people manage their money A) Checking account. B) Savings account. C) Savings. D) Savings tools. Show Answer Correct Answer: D) Savings tools. 26. The last reported price at which a security was traded on an exchange. A) Stock. B) Inflation. C) Market price. D) Bond. Show Answer Correct Answer: C) Market price. 27. Which of the following is a short term savings/investing option? A) Mutual Funds. B) Bonds. C) Stocks. D) Savings Account. Show Answer Correct Answer: D) Savings Account. 28. Using the Rule of 72, calculate how approximately how long it will take to double your money if your money is earning a 6% interest rate. A) 14 years. B) 12 years. C) 13 years. D) 15 years. Show Answer Correct Answer: B) 12 years. 29. Company profits distributed to stockholders. A) Dividends. B) Interest. C) Capital. D) Rent. Show Answer Correct Answer: A) Dividends. 30. The chance that in investment will decrease in value is a A) Risk. B) Loss. C) Capital gain. D) Dividend. Show Answer Correct Answer: A) Risk. ← 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