This quiz works best with JavaScript enabled. Home > Economics > Saving > Investing > Saving And Investing – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Saving And Investing Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If you plan to go skiing next winter, your BEST choice for saving money is A) Investing in Savings Bonds. B) Buying stocks. C) Putting your money in a five year CD. D) Putting money in a savings account. Show Answer Correct Answer: D) Putting money in a savings account. 2. Which of the following acts as a loan for the government or corporations, payable to people that buy them? A) Bonds. B) Mutual funds. C) T-bills. D) Stocks. Show Answer Correct Answer: A) Bonds. 3. If you make $ 75, 000 a year, you earn a/an A) Minimum Wage. B) Too much. C) Wage. D) Salary. Show Answer Correct Answer: D) Salary. 4. Businesses that provide financial services A) Depository institution. B) Certificate of deposit. C) Savings account. D) Checking account. Show Answer Correct Answer: A) Depository institution. 5. When investing the principal amount should ..... A) Decrease. B) Stay the same. C) Increase. D) None of above. Show Answer Correct Answer: C) Increase. 6. You are saving for Spring Break vacation in six months. Which savings tool should she choose? A) Savings account. B) Certificate of deposit. C) Interesting-earning checking account. D) Money market deposit account. Show Answer Correct Answer: D) Money market deposit account. 7. Which of the following types of returns are inversely related to interest rates? A) Bonus. B) Stock. C) Mutual fund. D) Bond. Show Answer Correct Answer: D) Bond. 8. Suzanne has a monthly net (take home) income of $ 2000. She pays $ 600 in expenses. What is her consumer debt-to-income ratio A) 10%. B) 30%. C) 40%. D) 20%. Show Answer Correct Answer: B) 30%. 9. Which of the following is an employer-sponsored retirement savings plan? A) Annuity. B) 401K Plan. C) Savings Account. D) Money Market fund. Show Answer Correct Answer: B) 401K Plan. 10. A type of time account A) Stock. B) Bond. C) Mutual fund. D) CD. Show Answer Correct Answer: D) CD. 11. What two things do you consider when evaluating the time value of money A) Time and savings. B) Time and interest rate. C) Inflation and interest rate. D) None of above. Show Answer Correct Answer: C) Inflation and interest rate. 12. Which of the following BEST describes diversifying a portfolio? A) Buying stocks every year in the same company. B) Buying corporate bonds and stocks in the same company. C) Buying stocks in several different companies. D) Putting all of your money in a safe investment. Show Answer Correct Answer: C) Buying stocks in several different companies. 13. To commit money to gain a profit or earn interest. A) Interest. B) Bond. C) Invest. D) Mutual Fund. Show Answer Correct Answer: C) Invest. 14. Alisa is looking for an investment that is structured to have tax benefits. She should look for information on: A) Tax-advantaged investments. B) Speculative investments. C) Index funds. D) Tax rated bonds. Show Answer Correct Answer: A) Tax-advantaged investments. 15. The portion of income not spent on current expenditures: A) Gross income. B) Financail goal. C) Net income. D) Savings. Show Answer Correct Answer: D) Savings. 16. How much money has been lost on insured deposits since the inception of the FDIC? A) Millions. B) Billions. C) None. D) $ 500, 000. Show Answer Correct Answer: C) None. 17. Which of the following is the most liquid asset? A) Stocks. B) Savings Bonds. C) Checking Account. D) Certificate of Deposit (CD). Show Answer Correct Answer: C) Checking Account. 18. Dow-Jones Industrial Average is made up of how many stocks A) 100. B) 25. C) 30. D) 50. Show Answer Correct Answer: C) 30. 19. Which of these is not a key to saving money A) Focus. B) Making saving a habit and a priority. C) Your income. D) Discipline. Show Answer Correct Answer: C) Your income. 20. A general increase in prices and fall in the purchasing value of money clearly defines which of the following A) Lien. B) Inflation. C) Amortization. D) Appropriation. Show Answer Correct Answer: B) Inflation. 21. What does Return on investment (ROI) calculate? A) Gains and losses. B) Only losses. C) Only gains. D) Inflation. Show Answer Correct Answer: A) Gains and losses. 22. The possible loss you face if your investment fails. A) Trade off. B) Risk. C) Rate of return. D) Capital gains. Show Answer Correct Answer: B) Risk. 23. If you have a low risk tolerance, you should A) Put all of your money in an insured savings account. B) Avoid stocks because they are too risky. C) Avoid buying bonds unless you work for the company. D) Invest in a mutual fund to spread your risk. Show Answer Correct Answer: D) Invest in a mutual fund to spread your risk. 24. What is not a reason to save A) To pay for college. B) To go to the casino. C) To buy a car. D) To buy a house. Show Answer Correct Answer: B) To go to the casino. 25. In which decade should you be saving for retirement? A) 20s. B) 30s. C) 40's. D) All ages. Show Answer Correct Answer: D) All ages. 26. In this type of market, investors are optimistic about investing and tend to start buying stocks A) Bull. B) Dog. C) Bear. D) Cat. Show Answer Correct Answer: A) Bull. 27. The possibility that an investment will fall to pay the expected return or fail to pay a return at all A) Investment philosophy. B) Bond. C) Investment. D) Investment risk. Show Answer Correct Answer: D) Investment risk. 28. How much money will you have at the end of three years if your principal is $ 100 and your interest rate is 5% (simple interest)? A) $ 15. B) $ 115. C) $ 105. D) $ 85. Show Answer Correct Answer: B) $ 115. 29. What is the benefit of having your money in a savings account? A) Option to buy bonds. B) Potential for high return. C) Easy access for emergencies. D) High interest rate. Show Answer Correct Answer: C) Easy access for emergencies. 30. Which of the following should have a contract between 2 parties which specify the terms and conditions for the rental use of a resource A) Maturity. B) Lien. C) Lease. D) Collateral. Show Answer Correct Answer: C) Lease. ← 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 8Saving And Investing Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books