This quiz works best with JavaScript enabled. Home > Saving > Investing > Saving And Investing – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Saving And Investing Quiz 15 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Percentage rate used to calculate interest A) Interest rate. B) Interest. C) Compound interest. D) Consumption. Show Answer Correct Answer: A) Interest rate. 2. A fee paid for the use of money. A) Invest. B) Internet. C) Interest. D) Stock. Show Answer Correct Answer: C) Interest. 3. The definition of M1 includes A) Investments such as stocks and bonds. B) Credit-card balances and mortgage debts. C) The gold and silver that backs the money supply. D) Currency, checkable deposits, and traveler's checks. Show Answer Correct Answer: D) Currency, checkable deposits, and traveler's checks. 4. When it comes to personal savings, what does the acronym PYF stand for? A) Prepare Your Future. B) Pay Your Friends. C) Pay Yourself First. D) Prepay Your Finances. Show Answer Correct Answer: C) Pay Yourself First. 5. Alicia Martin's savings account has a principal of $ 1, 200. It earns 6% interest. How much simple interest will she earn after 9 months, if the interest is figured every three months? A) $ 36.00. B) $ 1, 236.27. C) $ 1, 254.81. D) $ 54.00. Show Answer Correct Answer: D) $ 54.00. 6. Cash set aside to cover the cost of unexpected events A) Emergency savings. B) Saving. C) Savings. D) Interest. Show Answer Correct Answer: A) Emergency savings. 7. The amount of money you earn compared to the amount of money you invest A) Equity investment. B) Term. C) Fixed income statements. D) Return on investment (ROI). Show Answer Correct Answer: D) Return on investment (ROI). 8. Which of the following is a risk free investment? A) Stocks. B) Money Market Accounts. C) Corporate bonds. D) Real estate. Show Answer Correct Answer: B) Money Market Accounts. 9. Which of the following investment tools is considered to be a speculative investment? A) Futures. B) Mutual Fund. C) Savings Bond. D) Certificate of Deposit. Show Answer Correct Answer: A) Futures. 10. The value of shares issued by a company is known as which of the following? A) Stocks. B) Bonds. C) Equity. D) Collateral. Show Answer Correct Answer: C) Equity. 11. The higher the risk the, ..... the reward A) Higher. B) Lower. C) There is no relationship between risk and reward. D) All of the above. Show Answer Correct Answer: A) Higher. 12. An account at a depository institution that is designed to hold money not spent on current consumption A) Savings account. B) Savings tools. C) Checking account. D) Depository institution. Show Answer Correct Answer: A) Savings account. 13. The most common relationship between risk and return in investing can be stated as: A) Higher risk indicates lower return. B) Higher risk indicates higher return. C) Lower risk indicates higher return. D) No relationship exists between risk and return. Show Answer Correct Answer: B) Higher risk indicates higher return. 14. The benefit of diversification in your investments is: A) Reduced risk. B) Increased return. C) Increased risk. D) None of above. Show Answer Correct Answer: A) Reduced risk. 15. Examples of investing include all of the following except A) Buying stocks. B) Putting money under your mattress. C) Placing money in a 529 account. D) Purchasing real estate. Show Answer Correct Answer: B) Putting money under your mattress. 16. Professionally managed, diversified investment that pools resources of many investors A) Treasury bonds. B) Stock index. C) Mutual fund. D) Saving account. Show Answer Correct Answer: C) Mutual fund. 17. The financial agency that insures bank deposits is ..... A) The Federal Depository Insurance Corporation. B) The Federal Trade Commission. C) The Federal Reserve. D) None of above. Show Answer Correct Answer: A) The Federal Depository Insurance Corporation. 18. At your age, a fully funded emergency fund should be: A) $ 1, 000. B) $ 5, 000. C) $ 100. D) $ 500. Show Answer Correct Answer: D) $ 500. 19. Which type of investment income happens when an investor sells ownership in an equity investment that's gained value? A) Dividends. B) Capital gains. C) Interest. D) Equity gains. Show Answer Correct Answer: B) Capital gains. 20. Tax Defferal is ..... A) A type of investment risk. B) A lower tax rate. C) A no tax rate. D) Not a tax advantage. Show Answer Correct Answer: B) A lower tax rate. ← 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