This quiz works best with JavaScript enabled. Home > Saving > Investing > Saving And Investing – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Saving And Investing Quiz 13 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The current price that a buyer is willing to pay A) Market price. B) Return. C) Mutual fund. D) Investment. Show Answer Correct Answer: A) Market price. 2. 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. 3. Using the simple interest formula, calculate the interest earned on $ 1, 200 after 1 year at 4% return. A) $ 48.00. B) $ 4.80. C) $ 84.00. D) $ 8.40. Show Answer Correct Answer: A) $ 48.00. 4. Pools money of many investors and buys a large selection of investments. A) Mutual funds. B) Bonds. C) Stock. D) IRA. Show Answer Correct Answer: A) Mutual funds. 5. What dollar amount of government sponsored insurance by the FDIC is provided to bank customers? A) $ 10, 000. B) $ 150, 000. C) $ 250, 000. D) $ 350, 000. Show Answer Correct Answer: C) $ 250, 000. 6. 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) $ 100, 000-$ 200, 000. B) $ 200, 000-$ 400, 000. C) $ 400, 000-$ 600, 000. D) $ 600, 000-$ 1, 000, 000+. Show Answer Correct Answer: D) $ 600, 000-$ 1, 000, 000+. 7. Which of the following is true of government bonds? A) Is a risk management account. B) Funds deposited are tax deductible. C) Payments are directly deposited in the qualified savings account. D) Carry higher than market interest rates. Show Answer Correct Answer: D) Carry higher than market interest rates. 8. 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. 9. Total return on investment expressed as a percentage of the amount of money saved/invested A) Interest rate. B) Trade off. C) Risk. D) Dividend. Show Answer Correct Answer: A) Interest rate. 10. How many years will it take $ 4000 to double with a 5% interest rate? A) 1440. B) 14.4. C) 55.5. D) 80. Show Answer Correct Answer: B) 14.4. 11. The average American puts aside what percentage of his or her income as savings? A) Less than 3 percent. B) Nearly 8 percent. C) About 10 percent. D) More than 12 percent. Show Answer Correct Answer: A) Less than 3 percent. 12. Which type of account is typically the MOST liquid? A) Checking Account. B) Savings Account. C) Certificate of Deposit. D) Exchanged Traded Fund. Show Answer Correct Answer: A) Checking Account. 13. 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) $ 3.25. B) $ 4.75. C) $ 3.75. D) $ 4.25. Show Answer Correct Answer: C) $ 3.75. 14. Using the simple interest formula, calculate the interest earned on $ 25, 000 after .5 years at 3% return. A) $ 375.00. B) $ 750.00. C) $ 37.50. D) $ 75.50. Show Answer Correct Answer: A) $ 375.00. 15. Investment company that pools the money of many individuals to buy stock, bonds, or other investments A) Mutual Funds. B) Money Market Funds. C) IRAs. D) Roth IRAs. Show Answer Correct Answer: A) Mutual Funds. 16. 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. 17. Which of the following is NOT included in a loan document A) Lease. B) Promissory note. C) Security agreement. D) Financing statement. Show Answer Correct Answer: A) Lease. 18. A legal method of minimizing or decreasing an investor's taxable income and, therefore, his or her tax liability. usually for retirement A) IRA, 401k, 403b. B) Mutual fund. C) Stock. D) Risk. Show Answer Correct Answer: A) IRA, 401k, 403b. 19. A trained professional that helps people make investing decisions A) Financial advisor. B) Dividend. C) Index. D) Bond. Show Answer Correct Answer: A) Financial advisor. 20. 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) $ 3. B) $ 6. C) $ 9. D) $ 12. Show Answer Correct Answer: C) $ 9. ← 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