This quiz works best with JavaScript enabled. Home > Economics > Saving > Investing > Saving And Investing – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Saving And Investing Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. As soon as you start your career/job, what should you start saving for? A) Emergencies. B) Retirement. C) Dream vacation. D) Both emergencies and retirement. Show Answer Correct Answer: D) Both emergencies and retirement. 2. This type of stock is one that has potential earnings that are higher then its average earnings A) Blue Chip Stock. B) Growth Stock. C) Income Stock. D) Common Stock. Show Answer Correct Answer: B) Growth Stock. 3. How quickly and easily assets can be accessed and converted into cash. A) Savings. B) Interest. C) Return. D) Liquidity. Show Answer Correct Answer: D) Liquidity. 4. The rise in the general level of prices A) Inflation. B) Investment. C) Inflation risk. D) Bond. Show Answer Correct Answer: A) Inflation. 5. Which of the following savings or investing tools would go with "Financial Growth" ? A) Certificate of deposit. B) Insurance. C) Stocks. D) Real estate. Show Answer Correct Answer: C) Stocks. 6. Which of the following is NOT true of bonds A) Are securities which are not founded on debt. B) Provide relatively high potential returns. C) Creates ownership of a corporation. D) Lends out money to a company or goverment. Show Answer Correct Answer: C) Creates ownership of a corporation. 7. Reduces risk by spreading money among a wide array of investments A) Portfolio diversification. B) Rent. C) Investments. D) Return. Show Answer Correct Answer: A) Portfolio diversification. 8. Using the rule of 72, how many years would it take you to double your investment at a 4 percent rate of return? A) 6 years. B) 18 years. C) 12 years. D) 36 years. Show Answer Correct Answer: B) 18 years. 9. What interest rate would you need to double $ 3500 in 9 years? A) 8%. B) 10%. C) 7%. D) 38.8%. Show Answer Correct Answer: A) 8%. 10. Conner wants to purchase stocks with the money he received from his tax return. Who would he contact to make the transaction? A) The New York Stock Exchange. B) Conner should complete this transaction on his own. C) A real estate agent. D) A brokerage firm. Show Answer Correct Answer: D) A brokerage firm. 11. Most savings banks are insured by the A) FDIC. B) NCUA. C) FSLIC. D) NOW. Show Answer Correct Answer: A) FDIC. 12. Savings is best defined as: A) Amount remaining after current wants and needs have been satisfied. B) Investment opportunities which yields on 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. 13. What type of credit is typically offered by medical facilities and utility companies such as cell phone and electricity providers A) Revolving credit. B) Service credit. C) Installment credit. D) No credit. Show Answer Correct Answer: B) Service credit. 14. Offer investment transactions as well as investment advice and a financial advisor A) Investment. B) Full-service brokerage firm. C) Financial advisor. D) Bond. Show Answer Correct Answer: B) Full-service brokerage firm. 15. A written promise to pay a debt by a specified date. A) Bond. B) Mutual fund. C) Certificate of deposit. D) Stock. Show Answer Correct Answer: A) Bond. 16. Short-term means you save for.. A) 1 day. B) 5-10 years. C) 1-3 months. D) A few weeks. Show Answer Correct Answer: C) 1-3 months. 17. ..... is a retirement plan for certain employees of public schools, employees of certain tax-exempt organizations, and certain ministers. A) 401K. B) Keogh Plan. C) Social security. D) TSA (tax sheltered annuity) / 403 B. Show Answer Correct Answer: D) TSA (tax sheltered annuity) / 403 B. 18. An account used to hold money not spent on current consumption is a(n) A) Savings Account. B) Investment Philosophy. C) Checking Account. D) Financial Risk Pyramid. Show Answer Correct Answer: A) Savings Account. 19. You are given certificates issued by the US Treasury Department. What type of investment have you been given? A) Corporate bond. B) James Bond. C) U.S. savings bond. D) Municipal bond. Show Answer Correct Answer: C) U.S. savings bond. 20. The uncertainty regarding the outcome of a situation of event. A) Investment Risk. B) Inflation Risk. C) Risk. D) Return. Show Answer Correct Answer: C) Risk. 21. What is it called when you put money in your savings account before you pay your bills or spend discretionary money? A) Paying yourself first. B) Emergency funding. C) Compounding interest. D) Investing. Show Answer Correct Answer: A) Paying yourself first. 22. Refers to the likelihood that an investment will decrease in value. A) Chance. B) Gamble. C) Risk. D) Stake. Show Answer Correct Answer: C) Risk. 23. You plan to buy 5 shares of Facebook at $ 147.19. You will sell them when you finish college in 4 years. In 2021, a share of Facebook stock is valued at $ 163.87. How much is the value of the 5 shares in 2021? A) $ 819.35. B) $ 163.87. C) $ 83.40. D) $ 735.95. Show Answer Correct Answer: A) $ 819.35. 24. Rule of 72. How many years to double my money if I get a 9% return on investment? A) 7 years. B) 9 years. C) 8 years. D) 7.2 year. Show Answer Correct Answer: C) 8 years. 25. Money paid out of pocket before insurance covers remaining costs. A) Deductible / Co-Pay. B) Mutual Fund. C) Short-Term Goals. D) Principal. Show Answer Correct Answer: A) Deductible / Co-Pay. 26. Bills and coins circulating throughout the economy are know as ..... A) Fiat Money. B) Currency. C) Banknotes. D) Financial Intermediary. Show Answer Correct Answer: B) Currency. 27. This is when a company will pledge to repay a specific amount of money along with interest A) Corporate Bond. B) Government Bond. C) James Bond. D) None of above. Show Answer Correct Answer: A) Corporate Bond. 28. Portion of income not spent on consumption A) Saving. B) Savings. C) Consumption. D) Interest. Show Answer Correct Answer: B) Savings. 29. The system in which banks keep a portion of deposits in reserve and make loans with the rest is known as A) 401(k) retirement plans. B) Fractional reserve banking. C) The Federal Reserve system. D) He barter method. Show Answer Correct Answer: B) Fractional reserve banking. 30. Alicia Martin's savings account has a principal of $ 1, 200. It earns 7% interest compounded quarterly . How much compound interest will she earn after 9 months? A) $ 42.36. B) $ 42.37. C) $ 64.79. D) $ 64.11. Show Answer Correct Answer: D) $ 64.11. ← PreviousNext →Related QuizzesSaving QuizzesEconomics QuizzesSaving And Investing Quiz 1Saving And Investing Quiz 2Saving And Investing Quiz 3Saving And Investing Quiz 5Saving And Investing Quiz 6Saving And Investing Quiz 7Saving And Investing Quiz 8Saving And Investing Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books