This quiz works best with JavaScript enabled. Home > Saving > Investing > Saving And Investing – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Saving And Investing Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Interest earned on a Traditional IRA is A) Tax deferred. B) Tax free. C) Taxable upon reaching the age of 45. D) Taxable up to $ 2, 000 a year. Show Answer Correct Answer: A) Tax deferred. 2. Who uses financial institution A) Adults. B) College graduates. C) Almost everyone. D) Adults with lots of cash. Show Answer Correct Answer: C) Almost everyone. 3. The share of profits distributed in cash A) Dividend. B) Index. C) Bond. D) Capital gain. Show Answer Correct Answer: A) Dividend. 4. What is one strategy that you can use to save money for retirement? A) Put a little money into retirement each month. B) Spend every dollar you have. C) Do not put money into a retirement account. D) None of the above three choices are correct. Show Answer Correct Answer: A) Put a little money into retirement each month. 5. This is what you get to buy a home because you did not have enough money to buy it with cash. A) Down Payment. B) Mortgage. C) Principal. D) Interest. Show Answer Correct Answer: B) Mortgage. 6. Mrs.Tuner decided to buy a new set of expensive Cutco Knives for cooking. Now she can no longer go out to dinner with her friends on Friday night. this is an example of A) Investment. B) Risk. C) Opportunity cost. D) Pay it yourself first. Show Answer Correct Answer: C) Opportunity cost. 7. Account that pays higher interest on a lump sum of money for longer periods of time A) Certificate of Deposit. B) Money Market. C) Savings Account. D) Checking Account. Show Answer Correct Answer: A) Certificate of Deposit. 8. Any person, company or other institution that owns at least one share of a company's stock. A) Maturity date. B) Stock. C) Shareholder. D) Inflation. Show Answer Correct Answer: C) Shareholder. 9. Simple interest is best defined as: A) Interest earned on the principal investment. B) Any form of interest paid from saving and investing. C) Earning interest on interest. D) The effect interest has on the total return on investment. Show Answer Correct Answer: B) Any form of interest paid from saving and investing. 10. Which of the following is NOT one of the rules for building wealth? A) Save and invest early and often. B) Invest for the short haul. C) Don't leave money on the table. D) Diversify your investments. Show Answer Correct Answer: B) Invest for the short haul. 11. Ownership in a publicly traded corporation A) CD-certificate of deposit. B) Money Market. C) Treasury bill. D) Stock. Show Answer Correct Answer: D) Stock. 12. Created when a company combines the funds of many different investors and then invests that money in a diversified portfolio of investments A) Mutual fund. B) Maturity date. C) Bond. D) Stock. Show Answer Correct Answer: A) Mutual fund. 13. Which one is NOT an example of a long term investment option? A) Stock. B) Bond. C) Real estate. D) Checking account. Show Answer Correct Answer: D) Checking account. 14. When financial institutions lend money, they charge burrowers A) Debit. B) Stock. C) Interest. D) Credit. Show Answer Correct Answer: C) Interest. 15. The original amount of money saved or invested A) Principal. B) Savings. C) Compound interests. D) Saving. Show Answer Correct Answer: A) Principal. 16. The lower 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: B) Lower. 17. Length of a loan (time) A) Interest. B) Credit card. C) Term. D) None of above. Show Answer Correct Answer: C) Term. 18. A list of your investments is your ..... A) Book. B) Folder. C) Portfolio. D) None of above. Show Answer Correct Answer: C) Portfolio. 19. The best way to diversify your stock portfolio is to A) Invest in a few good companies you like. B) Invest in mutual funds and ETFs. C) Invest all your money is a great company, like Microsoft or Walmart. D) There is no way to diversify stocks. Avoid them. Show Answer Correct Answer: B) Invest in mutual funds and ETFs. 20. Which of the following is a feature of a money market deposit account? A) No minimum balance requirements. B) Unlimited transactions every month. C) Tiered interest rates. D) The money must remain in the account for a specific period of time. Show Answer Correct Answer: C) Tiered interest rates. ← PreviousNext →Related QuizzesSaving QuizzesSaving And Investing Quiz 1Saving And Investing Quiz 2Saving And Investing Quiz 4Saving And Investing Quiz 5Saving And Investing Quiz 6Saving And Investing Quiz 7Saving And Investing Quiz 8Saving And Investing Quiz 9Saving And Investing Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books