This quiz works best with JavaScript enabled. Home > Saving > Investing > Saving And Investing – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Saving And Investing Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How much people want a certain product is called A) Need. B) Want. C) Demand. D) Supply. Show Answer Correct Answer: C) Demand. 2. How much would $ 10, 000 on deposit at a five percent annual simple interest rate for three years earn? A) $ 1, 250. B) $ 1, 500. C) $ 1, 576.25. D) $ 2, 576.25. Show Answer Correct Answer: B) $ 1, 500. 3. How many years will it take to double your money with a 3% interest rate? A) 24 years. B) 12 years. C) 4 years. D) None of these. Show Answer Correct Answer: A) 24 years. 4. Identify the investment:-pools similar stocks together-the most popular type of investment-safer than investing in individual stocks A) Mutual funds. B) Bonds. C) Real estate. D) Commodities. Show Answer Correct Answer: A) Mutual funds. 5. People buy insurance because of ..... A) The risk. B) The law. C) Its what everybody does. D) None of above. Show Answer Correct Answer: A) The risk. 6. Employer sponsored tax deferred retirement account (employer matching)-Defined Contribution A) Traditional IRA. B) Roth IRA. C) 401(k)/403(b)/457. D) None of above. Show Answer Correct Answer: C) 401(k)/403(b)/457. 7. Which of the following savings or investing tools would go with "Capital Growth" ? A) Stocks. B) Real estate. C) Insurance. D) Certificate of deposit. Show Answer Correct Answer: B) Real estate. 8. Savings accounts are ....., which means you can access your money quickly. A) Risky. B) Safe. C) Liquid. D) None of above. Show Answer Correct Answer: C) Liquid. 9. Default risk is A) The potential that you will not get your money back once it is invested. B) Fear that inflation will grow faster than the interest you earn. C) Fear that you cannot earn enough money to meet your goals. D) The potential that you will quit saving. Show Answer Correct Answer: A) The potential that you will not get your money back once it is invested. 10. The Rule of 72 is an easy way to determine A) How long it will take your money to double using compound interest. B) The annual rate of return on your investment. C) How long it will take to get out of debt. D) The annual percentage rate on your savings. Show Answer Correct Answer: A) How long it will take your money to double using compound interest. 11. A regular savings account ..... A) Pays the lowest rate of interest of all savings accounts. B) Requires that money be deposited for a set amount of time. C) Pays a slightly higher interest rate than other savings plans. D) Is available only through a credit union. Show Answer Correct Answer: A) Pays the lowest rate of interest of all savings accounts. 12. A(n) ..... is a tax-deferred retirement plan offered by employers. Sometimes, employers will even match the contributions of employees up to a certain percentage. A) 401k. B) Traditional IRA. C) Roth IRA. D) Money Market Account. Show Answer Correct Answer: A) 401k. 13. When saving or investing, the principal is the A) Owner of the account. B) Primary investor in the account. C) Original amount of money deposited for investing. D) Amount of money paid out of the earnings. Show Answer Correct Answer: C) Original amount of money deposited for investing. 14. Which of the following investments signifies ownership in a corporation? A) Stocks. B) Bonds. C) Real estate. D) Commodities. Show Answer Correct Answer: A) Stocks. 15. Which of the following savings or investing tools would go with "Income" ? A) Stocks. B) Real estate. C) Insurance. D) Certificate of deposit. Show Answer Correct Answer: D) Certificate of deposit. 16. If you work for $ 9.00 an hour, you earn a/an A) Wage. B) Salary. C) Minimum Wage. D) Not enough. Show Answer Correct Answer: A) Wage. 17. If you wanted to earn the greatest amount of interest on your deposits, which kind of account should you choose? A) A checking account. B) A savings account. C) A credit card account. D) A certificate of deposit. Show Answer Correct Answer: D) A certificate of deposit. 18. Kayla is considering whether to open a savings account or buy stock. Her financial advisor tells her that investing involves ....., but he will help her money grow and help her make safe financial decisions. A) A down payment. B) Risk. C) Taxes. D) None of above. Show Answer Correct Answer: B) Risk. 19. This type of investment is essentially an IOU with a set rate of return.. A) Money market account. B) Stock. C) Bond. D) Certificate of deposit. Show Answer Correct Answer: C) Bond. 20. Where would you go to open up a savings account, certificate of deposit, or money market account? A) Stockbroker. B) Bank or credit union. C) Real estate agent. D) Insurance agent. Show Answer Correct Answer: B) Bank or credit union. ← PreviousNext →Related QuizzesSaving QuizzesSaving And Investing Quiz 1Saving And Investing Quiz 2Saving And Investing Quiz 3Saving 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