This quiz works best with JavaScript enabled. Home > Saving > Investing > Saving And Investing – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Saving And Investing Quiz 19 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When you borrow money you have to pay more money to the person you borrowed it from. This is called ..... A) Opportunity cost. B) Interest. C) Invest. D) None of above. Show Answer Correct Answer: B) Interest. 2. What does the "t" represent in the interest formulas? A) Time in months. B) Time in years. C) Time in days. D) None of above. Show Answer Correct Answer: B) Time in years. 3. Plans that take a year or more to accomplish. A) Long-Term Goals. B) Short-Term Goals. C) Long-Term Goats. D) Long-Term Golfs. Show Answer Correct Answer: A) Long-Term Goals. 4. If you have a low tolerance for risk, you would most likely invest your money in A) Stocks. B) Junk bonds. C) Government bonds. D) Corporate bonds. Show Answer Correct Answer: C) Government bonds. 5. Stocks and bonds are similar in that both A) Have a guaranteed rate of return. B) Provide ownership in a business. C) Have relatively high levels of risk. D) Are tied to the rate of inflation. Show Answer Correct Answer: C) Have relatively high levels of risk. 6. In relation to other options, how liquid is a savings account? A) More liquid than cash. B) Less liquid than mutual funds. C) More liquid than a certificate of deposit. D) More liquid than a checking account. Show Answer Correct Answer: C) More liquid than a certificate of deposit. 7. Which one of the following saving instruments is not insured by the federal government? A) Bank savings accounts. B) Credit union savings accounts. C) Money market mutual funds. D) Bank certificates of deposit (CDs). Show Answer Correct Answer: C) Money market mutual funds. 8. When should a person start saving? A) Age 18. B) Age 24. C) Age 30. D) As soon as possible. Show Answer Correct Answer: D) As soon as possible. 9. Marcus has received a $ 20, 000 gift for graduating high school, and he wants to invest is money in the stock market. Which of the following would NOT be able to help him? A) Websites such as e-Trade or Vanguard. B) Real estate agents. C) A stockbroker. D) A financial advisor. Show Answer Correct Answer: B) Real estate agents. 10. Identify the investment:-insured by the FDIC-earns higher interest than a traditional savings account-requires a higher balance than a traditional savings account A) ETF. B) Money market account. C) Bonds. D) Stocks. Show Answer Correct Answer: B) Money market account. 11. The percentage rate paid on money invested or saved. A) Rate of Return. B) Trade-Off. C) Capital Gains. D) Risk. Show Answer Correct Answer: A) Rate of Return. 12. The term used to describe how quickly an asset can be turned into cash. A) Accessibility. B) Solidity. C) Liquidity. D) Trade-Off. Show Answer Correct Answer: C) Liquidity. 13. Issued by the federal government as a way of borrowing money. Purchase at half value and redeem at full value. A) Savings Bonds. B) T-Bills. C) Savings Accounts. D) CDs. Show Answer Correct Answer: A) Savings Bonds. 14. Deposits that state the amount of the deposit, maturity, and rate of interest A) Certificate of Deposits. B) Savings Bonds. C) Stocks. D) Savings Accounts. Show Answer Correct Answer: A) Certificate of Deposits. 15. Risk that the price of an investment will go down A) Investment risk. B) Market price risk. C) Liquidity risk. D) Inflation risk. Show Answer Correct Answer: B) Market price risk. 16. What is a bond? A) Professionally managed portfolios made up of stocks and other investments. B) A kind of savings account. C) A bond is an "IOU, " certifying that you loaned money to a government or corporation and outlining the terms of repayment. D) None of above. Show Answer Correct Answer: C) A bond is an "IOU, " certifying that you loaned money to a government or corporation and outlining the terms of repayment. 17. Which of the following savings or investing tools would go with "Protection" ? A) Stocks. B) Real estate. C) Insurance. D) Certificate of deposit. Show Answer Correct Answer: C) Insurance. 18. Which of the following is true with regard to gross pay and net pay? A) Net pay is gross pay minus savings. B) Gross pay is usually less than net pay. C) Net pay is gross pay minus deductions. D) Net pay is gross pay plus Social Security contributions. Show Answer Correct Answer: C) Net pay is gross pay minus deductions. 19. The financial agency that insures bank deposits is ..... Sometimes it is referred to as the F D I C 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. 20. This type of investment option is essentially an IOU with a set of interest rate.The corporation/government promises to pay the buyer a certin amount of money in the end A) Money market account. B) Stock. C) Bond. D) Certificate of deposit. Show Answer Correct Answer: C) 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