Ch. 6 Quiz

Question 1

Which type of savings will penalize you if you withdraw before it reaches maturity?

Accepted Answer

CD

Question 2

Which type of savings requires between $1000-$2500 to get started?

Accepted Answer

MMDA

Question 3

Who serves as a go-between for buyers and sellers on the stock market?

Accepted Answer

Broker

Question 4

This term is used to describe the growth of a savings account for a certain period of time...

Accepted Answer

Maturity

Question 5

This is the most common pension plan. It withdraws a certain amount from each paycheck.

Accepted Answer

401 (k)

Question 6

People who have invested in a corporation and own some shares of stock are known as...

Accepted Answer

Stockholders

Question 7

Which organization protects savings accounts?

Accepted Answer

FDIC

Question 8

Why is buying a home considered a risky investment these days?

Accepted Answer

Housing market collapse of 2008. Another bubble is projected.

Question 9

Of the following savings or investments, which carries the least amount of risk?

Accepted Answer

CD

Question 10

Which retirement plan does not tax on interest once a person retires?

Accepted Answer

Roth IRA

Question 11

This is a certificate issued by a company or government in exchange for borrowed funds...

Accepted Answer

Bond

Question 12

What is an investment company that pools together money from several individuals for stocks and bonds?

Accepted Answer

Mutual Fund

Questions 12