This quiz works best with JavaScript enabled. Home > Economics > Saving > Investing > Saving And Investing – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Saving And Investing Quiz 9 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is principal? A) The amount of interest. B) The base amount in which interest is calculated. C) A person who works in a school. D) None of above. Show Answer Correct Answer: B) The base amount in which interest is calculated. 2. Using the simple interest formula, calculate the interest earned on $ 1, 200 after 1 year at 4% return. A) $ 8.40. B) $ 4.80. C) $ 48.00. D) $ 84.00. Show Answer Correct Answer: C) $ 48.00. 3. Pools money of many investors and buys a large selection of investments. A) Bonds. B) Mutual funds. C) IRA. D) Stock. Show Answer Correct Answer: B) Mutual funds. 4. What dollar amount of government sponsored insurance by the FDIC is provided to bank customers? A) $ 350, 000. B) $ 10, 000. C) $ 150, 000. D) $ 250, 000. Show Answer Correct Answer: D) $ 250, 000. 5. Retirement is a long ways off ..... however you will want to retire someday. Financial experts suggest that you will need how many dollars to retire? A) $ 400, 000-$ 600, 000. B) $ 200, 000-$ 400, 000. C) $ 600, 000-$ 1, 000, 000+. D) $ 100, 000-$ 200, 000. Show Answer Correct Answer: C) $ 600, 000-$ 1, 000, 000+. 6. Which of the following is true of government bonds? A) Is a risk management account. B) Carry higher than market interest rates. C) Payments are directly deposited in the qualified savings account. D) Funds deposited are tax deductible. Show Answer Correct Answer: B) Carry higher than market interest rates. 7. Which savings option is a collection of investments? A) Stocks. B) Bonds. C) Mutual Funds. D) None of above. Show Answer Correct Answer: C) Mutual Funds. 8. Total return on investment expressed as a percentage of the amount of money saved/invested A) Trade off. B) Risk. C) Interest rate. D) Dividend. Show Answer Correct Answer: C) Interest rate. 9. How many years will it take $ 4000 to double with a 5% interest rate? A) 1440. B) 14.4. C) 80. D) 55.5. Show Answer Correct Answer: B) 14.4. 10. The average American puts aside what percentage of his or her income as savings? A) Less than 3 percent. B) About 10 percent. C) Nearly 8 percent. D) More than 12 percent. Show Answer Correct Answer: A) Less than 3 percent. 11. Which type of account is typically the MOST liquid? A) Certificate of Deposit. B) Savings Account. C) Checking Account. D) Exchanged Traded Fund. Show Answer Correct Answer: C) Checking Account. 12. If you have $ 75 in a savings account for one year at an interest rate of 5 percent, how much interest will you earn at the end of the year? A) $ 4.75. B) $ 3.25. C) $ 3.75. D) $ 4.25. Show Answer Correct Answer: C) $ 3.75. 13. Using the simple interest formula, calculate the interest earned on $ 25, 000 after .5 years at 3% return. A) $ 37.50. B) $ 75.50. C) $ 750.00. D) $ 375.00. Show Answer Correct Answer: D) $ 375.00. 14. Investment company that pools the money of many individuals to buy stock, bonds, or other investments A) IRAs. B) Mutual Funds. C) Roth IRAs. D) Money Market Funds. Show Answer Correct Answer: B) Mutual Funds. 15. Interest rate paid built on a complex structure that varies with size of balance and current level of market interest rates is a ..... A) Interest-bearing Checking Account. B) Money Market Deposit Account. C) Savings Account. D) None of above. Show Answer Correct Answer: B) Money Market Deposit Account. 16. Which of the following is NOT included in a loan document A) Financing statement. B) Lease. C) Security agreement. D) Promissory note. Show Answer Correct Answer: B) Lease. 17. A legal method of minimizing or decreasing an investor's taxable income and, therefore, his or her tax liability. usually for retirement A) Stock. B) Mutual fund. C) IRA, 401k, 403b. D) Risk. Show Answer Correct Answer: C) IRA, 401k, 403b. 18. A trained professional that helps people make investing decisions A) Index. B) Bond. C) Financial advisor. D) Dividend. Show Answer Correct Answer: C) Financial advisor. 19. If you have $ 50 in a savings account with simple interest at a rate of 6%, how much interest will you earn at the end of 3 years? (Principle x Rate x Time = Interest) A) $ 12. B) $ 3. C) $ 6. D) $ 9. Show Answer Correct Answer: D) $ 9. 20. A retirement savings plan with special tax benefits, but it is NOT employer sponsored. A) Savings Account. B) 401 K. C) Dividend. D) IRA. Show Answer Correct Answer: D) IRA. 21. Which of the following should be considered when investing in the stock market? A) 52 week high/52 week low. B) P/E ratio. C) Dividend. D) All of these. Show Answer Correct Answer: D) All of these. 22. Giving up one thing for another A) Do it yourself. B) Consumption. C) Trade-off. D) Saving. Show Answer Correct Answer: C) Trade-off. 23. Which of the following investments would carry the most risk? A) Stock Market. B) Savings account. C) Checking account. D) Savings bond. Show Answer Correct Answer: A) Stock Market. 24. Which of the following would NOT increase the total cost of a loan? A) Higher principal. B) Higher interest. C) Higher credit score. D) Longer duration. Show Answer Correct Answer: C) Higher credit score. 25. Specified time in the future when the principal amount of a bond is repaid to the bondholder A) Maturity Date. B) Due Date. C) Issue Date. D) Deadline. Show Answer Correct Answer: A) Maturity Date. 26. How much does your employer pay into the Social Security system on your behalf? A) 84 percent. B) 124 percent. C) 42 percent. D) 6.2 percent. Show Answer Correct Answer: D) 6.2 percent. 27. Which of the following is not a purpose of saving? A) For purchases. B) For income. C) For retirement. D) For an emergency fund. Show Answer Correct Answer: B) For income. 28. The money you pay for insurance is called ..... A) The premium. B) The principal. C) The risk. D) None of above. Show Answer Correct Answer: A) The premium. 29. Results from an asset increasing in value between purchase and sale A) Capital gains. B) Liquidity. C) Dividend. D) Index. Show Answer Correct Answer: A) Capital gains. 30. A business that provides money related services. A) Final Institution. B) Financial Institution. C) Debit Union. D) Premium. Show Answer Correct Answer: B) Financial Institution. ← 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