This quiz works best with JavaScript enabled. Home > Saving > Investing > Saving And Investing – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Saving And Investing Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Lucretia deposits $ 2, 000 into a savings account. If the Fed requires a 20 percent reserve ratio, how much of Lucretia's money can the bank lend? A) $ 1, 200. B) $ 2, 000. C) $ 1, 600. D) $ 400. Show Answer Correct Answer: C) $ 1, 600. 2. An individual's general approach to investment risk A) Investment philosophy. B) Investment. C) Investment risk. D) Bond. Show Answer Correct Answer: A) Investment philosophy. 3. Saving for the future by putting money aside before paying regular monthly bills or using income for discretionary purchases A) Pay yourself first. B) Do it yourself. C) Principal. D) Savings. Show Answer Correct Answer: A) Pay yourself first. 4. Have the potential for significant fluctuations in return over a short period of time A) Speculative investments. B) Investments. C) Inflation. D) Stock. Show Answer Correct Answer: A) Speculative investments. 5. A contract that outlines coverage plans and protects a person against financial loss or damage. A) Insurance Policy. B) Long-Term Goals. C) Stock. D) Premium. Show Answer Correct Answer: A) Insurance Policy. 6. If you're interested in having your money invested in many different companies, you should buy a share in: A) A bond. B) Real estate. C) A large company. D) Mutual funds. Show Answer Correct Answer: D) Mutual funds. 7. When is your risk tolerance lowest? A) When you are closest to needing the money you invested. B) When you are concerned about the diversity of your investment portfolio. C) When you are an inexperienced investor. D) When you first make the investment. Show Answer Correct Answer: A) When you are closest to needing the money you invested. 8. How does an equity investor make money? A) Depositing money in compounding accounts. B) Lending money and charging interest. C) Selling an investment for more than they paid for it. D) Selling many investments at the same time. Show Answer Correct Answer: C) Selling an investment for more than they paid for it. 9. An account that allows quick access to funds for transactions A) Checking account. B) Savings account. C) Savings tool. D) Depository institution. Show Answer Correct Answer: A) Checking account. 10. When you use an online bank account the data that leaves your computer is usually ..... A) Embossed. B) Encoded. C) Encracked. D) Encrypted. Show Answer Correct Answer: D) Encrypted. 11. An investment with a high degree of risk where the focus of the purchaser is on price fluctuations. The investor buys the tradeable good (financial instrument) in an attempt to profit from market value changes. A) Mutual fund. B) Speculative investment. C) Stock. D) Bonds. Show Answer Correct Answer: B) Speculative investment. 12. Compound interest is best defined as: A) Interest earned on the principal investment. B) Any form of interest earned from saving or investing. C) Earning interest on interest. D) The effect interest has on the total return on investment. Show Answer Correct Answer: C) Earning interest on interest. 13. When you diversify your investments it means you A) You put your money in one place. B) You give all your money away. C) You don't save any money. D) You put your money into many different types of investments. Show Answer Correct Answer: D) You put your money into many different types of investments. 14. Only completes orders to buy and sell investments A) Discount brokerage firm. B) Brokerage firm. C) Full-service brokerage. D) Financial advisor. Show Answer Correct Answer: A) Discount brokerage firm. 15. FARRM stands for which of the following A) Farmers of American Ranching and Rural Marketign. B) Farming and Ranching Rural Mercantile. C) Farming Around Rural Ranching Management. D) Farm and Ranch Risk Management. Show Answer Correct Answer: D) Farm and Ranch Risk Management. 16. Reduce, defer, or adjust the current year tax liability A) Tax-advantaged investments. B) Investments. C) Inflation. D) Risk. Show Answer Correct Answer: A) Tax-advantaged investments. 17. The value of the next best alternative that must be forgone as a result of a decision A) Opportunity cost. B) Consumption. C) Principal. D) Savings. Show Answer Correct Answer: A) Opportunity cost. 18. The total return on an investment expressed as a percentage of the amount of money saved A) Rate of return. B) Return. C) Rent. D) Bond. Show Answer Correct Answer: A) Rate of return. 19. It is best to have the rate of return on an investment than the rate of inflation. A) Lower, in order to minimize taxes. B) Lower, in order to minimize risk. C) Higher, to maintain purchasing power. D) Higher, to minimize risk. Show Answer Correct Answer: C) Higher, to maintain purchasing power. 20. Which of the following are safe ways to save? A) Savings Account. B) Money Market Account. C) Certificate of Deposit. D) All of these are safe ways to save. Show Answer Correct Answer: D) All of these are safe ways to save. ← 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 9Saving And Investing Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books