Unit 10 Test

Question 1

An investor can invest in the stock market without buying stocks in a specific corporation

Accepted Answer

mutual fund

Question 2

When planning your budget you need to plan for expenditures that might rise in cost such as gas

Accepted Answer

t

Question 3

Some banks charge a $20 or $25 penalty fee for checks you don’t have enough money to cover.

Accepted Answer

t

Question 4

You need this in your budget for long-range goals like buying a car or taking a vacation.

Accepted Answer

plan for savings

Question 5

This type of checking account earns money.

Accepted Answer

interest-bearing account

Question 6

you lose a check and want to prevent someone else from using ityou can issue this type of order

Accepted Answer

stop payment

Question 7

Which refers to the interest you earn only on the money you deposit into your savings account?

Accepted Answer

simple interest

Question 8

Stocks are very liquid because they can easily be sold to turn into cash.

Accepted Answer

t

Question 9

Blue-chip stocks are safer than speculative stocks.

Accepted Answer

t

Question 10

This is the place where most stocks are bought and sold.

Accepted Answer

stock exchange

Question 11

Which of the following refers to the payee’s signature on the back of the check?

Accepted Answer

endorsement

Question 12

You can handle your checking account through online banking.

Accepted Answer

t

Question 13

Which is not a type of savings account?

Accepted Answer

demand deposit

Question 14

Refers to buying and selling stock based on minute-by-minute changes in the price of the stock

Accepted Answer

day trading

Question 15

Which of the following types of savings accounts is not insured by the federal government?

Accepted Answer

money market fund

Question 16

The amount of money you earn that you actually take home after payroll deductions is called

Accepted Answer

net pay

Question 17

Which of the following refers to checks that have been written and cashed?

Accepted Answer

canceled checks

Question 18

Because money you earn on a savings account is considered income, you have to do this.

Accepted Answer

pay taxes on it

Question 19

Selfemployed pay their taxes to the government people who receive paychecks have taxes withheld

Accepted Answer

t

Question 20

A checking account is also a demand deposit

Accepted Answer

t

Question 21

You take home all the money you earn as gross pay.

Accepted Answer

f

Question 22

Which refers to the return on an investment, or the amount of money an investment earns?

Accepted Answer

yield

Question 23

Which refers to the difference between how much you planned to spend and how much you spent

Accepted Answer

budget variance

Question 24

If a company fails, common stockholders are paid before preferred stockholders.

Accepted Answer

f

Question 25

The (FDIC) is a government agency that insures bank accounts up to $100,000.

Accepted Answer

t

Question 26

Savings accounts earn interest and don’t cost any money.

Accepted Answer

F

Question 27

Which of the following is a plan for using your money?

Accepted Answer

budget

Unit 10 Test

Questions 27

Unit 10 Test

Questions 27