This quiz works best with JavaScript enabled. Home > Saving > Investing > Saving And Investing – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Saving And Investing Quiz 11 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A general increase in prices and fall in the purchasing value of money clearly defines which of the following A) Amortization. B) Inflation. C) Lien. D) Appropriation. Show Answer Correct Answer: B) Inflation. 2. 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. 3. The possible loss you face if your investment fails. A) Rate of return. B) Risk. C) Capital gains. D) Trade off. Show Answer Correct Answer: B) Risk. 4. 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. 5. What is not a reason to save A) To buy a house. B) To buy a car. C) To pay for college. D) To go to the casino. Show Answer Correct Answer: D) To go to the casino. 6. 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. 7. In this type of market, investors are optimistic about investing and tend to start buying stocks A) Bull. B) Bear. C) Dog. D) Cat. Show Answer Correct Answer: A) Bull. 8. The possibility that an investment will fall to pay the expected return or fail to pay a return at all A) Investment risk. B) Investment philosophy. C) Investment. D) Bond. Show Answer Correct Answer: A) Investment risk. 9. 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) $ 85. C) $ 105. D) $ 115. Show Answer Correct Answer: D) $ 115. 10. What is the benefit of having your money in a savings account? A) Easy access for emergencies. B) High interest rate. C) Potential for high return. D) Option to buy bonds. Show Answer Correct Answer: A) Easy access for emergencies. 11. 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) Collateral. B) Lease. C) Lien. D) Maturity. Show Answer Correct Answer: B) Lease. 12. Your returns (or interest rate) are 8% a year. How long before your investment doubles? A) 9 years. B) 8 years. C) 7 years. D) Never. Show Answer Correct Answer: A) 9 years. 13. 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. 14. 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%. 15. Which shows the best understanding of compound interest? A) Interest earned on the principal investment. B) Any form of interest earned from saving or investing. C) Earning interest on interest. D) The effect interest has the the total return on interest. Show Answer Correct Answer: C) Earning interest on interest. 16. Written as a decimal is ..... A) 0.12. B) 12.0. C) 1.2. D) 0.012. Show Answer Correct Answer: A) 0.12. 17. 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. 18. 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) $ 400. B) $ 300. C) $ 275. D) $ 500. Show Answer Correct Answer: A) $ 400. 19. 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. 20. A form of lending to a company or the government (city, state, or federal) A) Bond. B) Index. C) Rent. D) Return. Show Answer Correct Answer: A) Bond. ← PreviousNext →Related QuizzesSaving 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 8Saving And Investing Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books