This quiz works best with JavaScript enabled. Home > Economics > Saving > Investing > Saving And Investing – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Saving And Investing Quiz 8 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Your returns (or interest rate) are 8% a year. How long before your investment doubles? A) 7 years. B) 8 years. C) 9 years. D) Never. Show Answer Correct Answer: C) 9 years. 2. The Federal Reserve plays an important role in A) Providing loans directly to consumers. B) Offering credit cards to high-risk individuals. C) Controlling the money supply. D) All of the above. Show Answer Correct Answer: C) Controlling the money supply. 3. How much of your income should you put in savings? A) 10%. B) 15%. C) 20%. D) None of above. Show Answer Correct Answer: B) 15%. 4. Which shows the best understanding of compound interest? A) The effect interest has the the total return on interest. B) Earning interest on interest. C) Any form of interest earned from saving or investing. D) Interest earned on the principal investment. Show Answer Correct Answer: B) Earning interest on interest. 5. Written as a decimal is ..... A) 0.12. B) 1.2. C) 12.0. D) 0.012. Show Answer Correct Answer: A) 0.12. 6. What's a smart way to manage risk when you invest? A) Avoid risky investments altogether. B) Be sure you understand what you're buying. C) Buy only bonds. D) Adjust your portfolio at least once a month. Show Answer Correct Answer: B) Be sure you understand what you're buying. 7. Using the sinking fund approach, how much do you have to save each month to buy a $ 4, 800 car one year from now A) $ 500. B) $ 275. C) $ 300. D) $ 400. Show Answer Correct Answer: D) $ 400. 8. Which of the following may not loan for debt financing A) Government programs. B) Bonds. C) Angel investors. D) Friends and relatives. Show Answer Correct Answer: C) Angel investors. 9. A form of lending to a company or the government (city, state, or federal) A) Rent. B) Index. C) Bond. D) Return. Show Answer Correct Answer: C) Bond. 10. An IOU issued by a company is ..... A) The Principal. B) A Savings Account. C) A Bond. D) A Stock. Show Answer Correct Answer: C) A Bond. 11. You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money? A) Compounding 4 times a year. B) Compounding daily. C) Compounding monthly. D) Compounding 1 time a year. Show Answer Correct Answer: B) Compounding daily. 12. Payment people receive when they lend money or allow someone else to use their money A) Saving. B) Maturity. C) Stock. D) Interest. Show Answer Correct Answer: D) Interest. 13. One who owns stock. A) Shareholder. B) Owner. C) Dividend. D) Teller. Show Answer Correct Answer: A) Shareholder. 14. Which is more risky A) Savings account. B) Stock market. C) Checking account. D) Retirement fund. Show Answer Correct Answer: B) Stock market. 15. What is a good moto to live by? A) Buy more, save less. B) Don't ever spend money. C) Save more, buy less. D) Only save enough money for food. Show Answer Correct Answer: C) Save more, buy less. 16. The risk your investment is not being misrepresented or involved in a scam A) Liquidity Risk. B) Fraud Risk. C) Financial Risk. D) Market Risk. Show Answer Correct Answer: B) Fraud Risk. 17. Which of the following are ways to save money? A) A savings account. B) A money market account. C) A CD. D) All of these are ways to save money. Show Answer Correct Answer: D) All of these are ways to save money. 18. A benefit of Saving and Investing is A) Helps reach personal goals. B) Builds Financial Security. C) Accumulates Wealth. D) All of these are benefits of Saving and Investing. Show Answer Correct Answer: D) All of these are benefits of Saving and Investing. 19. Assets purchased with the goal of providing additional income from the asset itself but with the risk of loss A) Bond. B) Investment. C) Investment risk. D) Inflation. Show Answer Correct Answer: B) Investment. 20. Which one of the following did you not learn about savings and investing? A) The difference in risk between savings and investing. B) The rate of return will differ with different investments. C) When you start investing doesn't matter. D) You should PYF. Show Answer Correct Answer: C) When you start investing doesn't matter. 21. Which option allows you to pool your money and invest in a portfolio with other investors? A) A 529 plan. B) A 401(k) plan. C) A mutual fund. D) An IRA account. Show Answer Correct Answer: C) A mutual fund. 22. A group of similar stocks and bonds A) Index. B) Bond. C) Index fund. D) Dividend. Show Answer Correct Answer: A) Index. 23. When the economy is good ..... A) Pig market. B) Bear market. C) Dog market. D) Bull market. Show Answer Correct Answer: D) Bull market. 24. When a company combines the funds of many different investors then invests that money in a diversified portfolio of stocks and bonds is called: A) Mutual Fund. B) Speculative Investments. C) Real Estate. D) None of above. Show Answer Correct Answer: A) Mutual Fund. 25. The profit from selling stock at a higher price than one paid for it. A) Dividend. B) Interest Rate. C) Trade-Off. D) Capital Gains. Show Answer Correct Answer: D) Capital Gains. 26. This is a type of investment where investors pool their money together to buy stocks, bonds, and other securities A) Mutual Funds. B) Mutual Diversification Portfolio. C) Diversification. D) Pool Party. Show Answer Correct Answer: A) Mutual Funds. 27. Linda needs a savings tool to help her manage her everyday purchases. The savings tool needs to be very liquid and accessible. Which savings tool should Linda choose? A) Certificate of deposit. B) Checking account. C) Money market deposit account. D) Any of the above savings tools. Show Answer Correct Answer: B) Checking account. 28. When talking about diversifying your investments, you are referring to A) Putting all your money in the lowest risk investment possible. B) Purchasing speculative investments. C) Loaning your money to the government. D) Investing in multiple different investments. Show Answer Correct Answer: D) Investing in multiple different investments. 29. Which should you choose if you want the best rate of return on your interest? A) Daily Compounding. B) Monthly Compounding. C) Annual Compounding. D) Semi-annual Compounding. Show Answer Correct Answer: A) Daily Compounding. 30. The current price that a buyer is willing to pay A) Investment. B) Mutual fund. C) Return. D) Market price. Show Answer Correct Answer: D) Market price. ← 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 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books