This quiz works best with JavaScript enabled. Home > Economics > Saving > Investing > Saving And Investing – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Saving And Investing Quiz 5 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When investing, which is typically correct? A) Greater Risk, Greater Return. B) None of the Above. C) Greater Risk, Less Return. D) Lower Risk, More Return. Show Answer Correct Answer: A) Greater Risk, Greater Return. 2. Where is the headquarters for the Federal Credit Administration located A) Dallas, Texas. B) McLean, Virginia. C) Sacramento, California. D) Bloomington, Minnesota. Show Answer Correct Answer: B) McLean, Virginia. 3. Unearned income received from the sale of an asset above its purchase price A) Dividend. B) Market price. C) Bond. D) Capital gain. Show Answer Correct Answer: D) Capital gain. 4. Which type of credit generally charges borrows the highest rate of interest A) Unsecured loan. B) Amortized mortgage. C) Collateralized loan. D) Secured loan. Show Answer Correct Answer: A) Unsecured loan. 5. A place (physical or internet) where stocks are traded. A) Bond Markets. B) Stock Market. C) Stockholders. D) Mutual Markets. Show Answer Correct Answer: B) Stock Market. 6. Principal 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: D) The money originally invested or loaned. 7. A pool of money collected from many investors, and used to buy stocks, bonds, and other securities. A) Bond. B) Mutual fund. C) Goals. D) Stock. Show Answer Correct Answer: B) Mutual fund. 8. Which of the following describes lease A) Method of gaining the use of assets for the business. B) Business selling stocks directly to the public. C) Sale of stock by a private company. D) Friend of relative receives an ownership interest in the business. Show Answer Correct Answer: A) Method of gaining the use of assets for the business. 9. A young investor willing to take moderate risk for above-average growth would be most interested in: A) Bonds. B) Mutual funds. C) Single stocks. D) Real estate. Show Answer Correct Answer: B) Mutual funds. 10. Pays regular, often steadily increasing dividends A) Growth. B) Blue chip. C) Income. D) Preferred. Show Answer Correct Answer: C) Income. 11. When was the FDIC created? A) 1933. B) 1923. C) 1910. D) 1920. Show Answer Correct Answer: A) 1933. 12. A saver who wants her savings insured by FDIC wants to use this savings option A) Mutual fund. B) Bonds. C) Savings account. D) Stock. Show Answer Correct Answer: C) Savings account. 13. Deciding whether to save $ 25 dollars or buy a pair of shoes illustrates A) Risk. B) Opportunity cost. C) Denial of benefits. D) Budgeting. Show Answer Correct Answer: B) Opportunity cost. 14. Which of the following is a saving certificate with a fixed maturity date and specified fixed interest rate? A) Annuity. B) Certificate of deposit. C) High-yield of deposit. D) Money market fund. Show Answer Correct Answer: B) Certificate of deposit. 15. What is a volatile investment? A) An investment that requires a high volume of investors. B) An investment that gains value slowly over time. C) An investment that is fairly low risk. D) An investment that can change quickly without warning. Show Answer Correct Answer: D) An investment that can change quickly without warning. 16. The return on your investment for a savings account is the: A) Balance. B) APR. C) Principle. D) APY. Show Answer Correct Answer: D) APY. 17. The amount of interest earned depends on the account balance A) Savings tools. B) Saving account. C) Checking account. D) Tiered interest rate. Show Answer Correct Answer: D) Tiered interest rate. 18. This class of ownership has a higher claim on the assets and earnings A) Income. B) Growth. C) Common. D) Preferred. Show Answer Correct Answer: D) Preferred. 19. Which of the following items is liquid? A) Money invested in a CD. B) Money is a savings account. C) A new car. D) Money invested in real estate. Show Answer Correct Answer: B) Money is a savings account. 20. Lucretia deposits $ 2, 000 into a savings account. If the Fed requires a 20 percent reserve ratio, how much of Lucretia's money can the bank lend? A) $ 400. B) $ 1, 200. C) $ 2, 000. D) $ 1, 600. Show Answer Correct Answer: D) $ 1, 600. 21. An individual's general approach to investment risk A) Investment risk. B) Investment philosophy. C) Investment. D) Bond. Show Answer Correct Answer: B) Investment philosophy. 22. Saving for the future by putting money aside before paying regular monthly bills or using income for discretionary purchases A) Principal. B) Do it yourself. C) Savings. D) Pay yourself first. Show Answer Correct Answer: D) Pay yourself first. 23. Have the potential for significant fluctuations in return over a short period of time A) Speculative investments. B) Inflation. C) Stock. D) Investments. Show Answer Correct Answer: A) Speculative investments. 24. A contract that outlines coverage plans and protects a person against financial loss or damage. A) Long-Term Goals. B) Premium. C) Stock. D) Insurance Policy. Show Answer Correct Answer: D) Insurance Policy. 25. If you're interested in having your money invested in many different companies, you should buy a share in: A) Real estate. B) A large company. C) A bond. D) Mutual funds. Show Answer Correct Answer: D) Mutual funds. 26. When is your risk tolerance lowest? A) When you are closest to needing the money you invested. B) When you are concerned about the diversity of your investment portfolio. C) When you are an inexperienced investor. D) When you first make the investment. Show Answer Correct Answer: A) When you are closest to needing the money you invested. 27. How does an equity investor make money? A) Depositing money in compounding accounts. B) Lending money and charging interest. C) Selling an investment for more than they paid for it. D) Selling many investments at the same time. Show Answer Correct Answer: C) Selling an investment for more than they paid for it. 28. An account that allows quick access to funds for transactions A) Checking account. B) Savings account. C) Depository institution. D) Savings tool. Show Answer Correct Answer: A) Checking account. 29. When you use an online bank account the data that leaves your computer is usually ..... A) Encoded. B) Embossed. C) Encrypted. D) Encracked. Show Answer Correct Answer: C) Encrypted. 30. An investment with a high degree of risk where the focus of the purchaser is on price fluctuations. The investor buys the tradeable good (financial instrument) in an attempt to profit from market value changes. A) Stock. B) Mutual fund. C) Speculative investment. D) Bonds. Show Answer Correct Answer: C) Speculative investment. ← PreviousNext →Related QuizzesSaving QuizzesEconomics QuizzesSaving And Investing Quiz 1Saving And Investing Quiz 2Saving And Investing Quiz 3Saving And Investing Quiz 4Saving 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