The relationship between risk and return mean that:

Higher Risk indicates higher return

A share or ownership in a company.

Interest earned on the principal investment

Tiered Interest Rate means that:

The higher the account balance, the higher interest rate

Pay yourself first means that:

Setting aside a predetermined amount of money for the future

How quickly assets can be converted into cash

A type of debt that a company issues investors.

When thinking about the Time value of money is important to remember that:

Invest as long as possible and at the highest interest rate

A diversified portfolio means:

Your money in a variety of investment to decrease risk

Which of the following is true in regards to paying taxes on investments?

Taxes are often owned on profits from investments.

Certificate of Deposit is:

Funds deposited into a CD for a certain length of time

The rise in the general level of prices

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Saving and Investing Quiz

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Questions 22

Answers

1
To purchase stock one could consulate
A real estate agent
The New York Stock Exchange
Brokerage Firm
Dominos
2
The relationship between risk and return mean that:
higher risk indicates lower return.
lower risk indicates higher return
Higher Risk indicates higher return
There is no relationship between the two.
3
Mutual Funds are:
Diversified investments
speculative investments
saving tool
real estate investment
4
A stock is:
A share or ownership in a company.
Value
Trade-Off
Saving Tool
5
Savings account is more liquid than which one of the following:
Checking Account
None of the Choices are correct
Cash
Certificate of Deposit
6
Simple interest is:
Earning interest on interest
Any form of interest earned from saving and investing.
The effect interest has on the total return
Interest earned on the principal investment
7
Savings Tools are protected from loss by the
Federal Government
Local Government
World Bank
State Government
8
Tiered Interest Rate means that:
Account balances and interest rates don't change.
Low account balance, high interest
High account balance, low interest rate
The higher the account balance, the higher interest rate
9
An investment that is structured to have tax benefits is:
Index Funds
Speculative Investments
Tax-advantaged investments
Tax rated bonds
10
Pay yourself first means that:
Taking all of your money and spending on yourself.
Going on a relaxing vacation
Not saving any money
Setting aside a predetermined amount of money for the future
11
Liquidity is:
How quickly assets can be converted into cash
The amount of savings available
The amount of money needed to pay for one's needs and wants.
Measurement of wealth
12
The rate of return on an investment needs to be _______ than the rate of inflation.
None of the choices are correct
Equal
Lower
Higher
13
Money Market Account has
An uncertainty about a return on the investment
The money must remain in the account for a specified time.
No minimum balances
Tiered interest rates
14
A bond is:
A type of debt that a company issues investors.
type of investment available at depository institutions
A share or ownership in a company
Investment that has fluctuations over a period of time
15
When thinking about the Time value of money is important to remember that:
Invest at a high interest rate
Invest a large principal amount and make no charges
Invest a small amount.
Invest as long as possible and at the highest interest rate
16
A diversified portfolio means:
Your money in a variety of investment to decrease risk
None of the choices are correct.
putting of your money into one investment tool
Indicates the amount of an return on an investment.
17
Compound Interest is:
Interest earned on the principal amount.
None of the choices are correct.
The effect interest has on the total return of an investment
Earning interest on interest
18
Which of the following is true in regards to paying taxes on investments?
Taxes are always paid on investments.
Taxes are not paid on employee sponsored investments.
Taxes are often owned on profits from investments.
Taxes do not have to be paid on investment earnings
19
Certificate of Deposit is:
Funds deposited into a CD for emergencies
Funds deposited into a CD for everyday spending.
None of the choices are correct.
Funds deposited into a CD for a certain length of time
20
The most liquid savings tool is:
Money Market Account
Certificate of Deposit
Checking Account
Savings Account
21
Inflation is:
The uncertainty about a return on the investment
The projected value of an investment.
The number of times something happens to money
The rise in the general level of prices
22
Giving up one thing for another is an:
Trade Off
Interest
Opportunity Cost
SMART goal

Saving and Investing Quiz Flashcards | StudBud