POB 4.03 Review

Question 1

What type of savings is Melissa considering that allows her to access money as cash?

Accepted Answer

liquidity

Question 2

The Federal Reserve System supplied $400 million to the monetary system. Which service is this?

Accepted Answer

Participating in open market activities

Question 3

Amy wants a savings plan that earns interest on prior earned interest. Which interest is this?

Accepted Answer

compound

Question 4

Which evaluation factor of saving is considered when reviewing a portfolio for quick use?

Accepted Answer

liquidity

Question 5

How are common and preferred stocks different?

Accepted Answer

Preferred stockholders prioritize dividend payments

Question 6

How much interest is earned on $1800 that is compounded semiannually at a 6% rate for one yr?

Accepted Answer

$109.62

Question 7

Which savings plan is used when regular deposits are made that indicate how the money market is

Accepted Answer

money market account

Question 8

What type of stock is offered by Best Buy at a consistent rate of 6% without voting rights?

Accepted Answer

Preferred stock

Question 9

Which type of investment is it when previously purchased items can be exchanged for more money?

Accepted Answer

Collectibles

Question 10

Dylan sells specialty guitars and hopes to exchange them for higher value. These guitars may be

Accepted Answer

collectibles

Questions 10