Saving
Which of the following is a true statement about saving?
A. Saving is income which is not consumed.
Which of the following describes a portion of ownership in a corporation?
a. Stock
Which of the following describes the rate at which the general level of prices for goods and services rises?
C. Inflation
Which of the following describes the degree to which an asset can be quickly bought in the market without affecting the asset’s price?
A. Liquidity
__________ refers to land, as well as any physical property affixed to the land.
A. Real Estate
Select all of the following which are protected by the FDIC.
Certificate of deposit
High-yield bank account
Money market fund
Savings account
Certificate of deposit
High-yield bank account
Savings account
Which of the following is made up of a pool of funds collected from many investors to invest in securities?
B. Mutual Fund
Which of the following is the act of buying an asset to generate returns over a period of time while also managing risk and volatility?
A. Investing
Which of the following involves restricting expenses and keeping the unspent money in an individual’s custody to accumulate it?
C. Saving
Which of the following is a risk management technique which spreads assets into a portfolio with a wide variety of investments?
B. Diversification
Which of the following is a contract between an investor and an insurance company in which the company promises to make periodic payments to the investor?
D. Annuity
Select all of the following which are some of the most popular precious metals with investors.
Gold
Platinum
Silver
Which of the following is interest computed on the principal, excluding previously earned interest?
D. Simple Interest
Which of the following is an employer-sponsored retirement savings plan?
401K Plan
Select the two primary varieties of interest.
Compound Interest & Simple Interest
Which of the following is a type of mutual fund which invests only in low-risk securities?
D. Money Market Fund
Select all of the following which are examples of a collectible.
Antiques
Arts
Comic books
Real estate
Antiques
Arts
Comic Books
Which of the following are intermediaries between buyers and sellers to facilitate security transactions?
B. Brokerages
Which of the following is a long-term goal?
C. Saving for a college education
Which of the following regulates money market funds?
B. SEC
Select all of the following, which a prepaid tuition plan covers.
Books and supplies
Computer and peripherals
Tuition and fees
Select all of the following which are true statements about investing.
- Investing can help a person reach long-term goals
- Investing is the allocation of money or other resources with regard to the expectation of some benefits in the future
- Investing may result in losing some or all of the money invested
- Investing usually gains lower returns than saving
Investing can help a person reach long-term goals
Investing is the allocation of money or other resources with regard to the expectation of some benefits in the future
Investing may result in losing some or all of the money invested
Which of the following is interest computed on the initial principal and accumulated interest from previous periods?
B. Compound Interest
How much would $10,000 on deposit at a five percent annual simple interest rate for three years earn?
$1,500
Which of the following types of returns are inversely related to interest rates?
C. Bonds