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- 1. Multiple Choice
Risky investmentsAre meant to make small returns on investmentMay lead to a larger return on investmentAre always long-termInvolve checking accounts - 2. Multiple ChoiceAll of these are benefits to high liquidity investments exceptA high rate of returnEasily accessibleCan convert to cash when neededLess risky
- 3. Multiple ChoiceA mutual fund isAn investment in a diversified group of stocksThe money left over when reinvested into the companyAn account that guarantees a fixed rate of returnExclusively for retirement accounts
- 4. Multiple ChoiceWhich is the least risky?StockCDSavings accountMutual fund
- 5. Multiple ChoiceDon't put all your eggs in one basket best refers to which of the following pieces of adviceDiversify your stock portfolio in order to reduce riskInvest in a single stock for the largest gainTake out as many loans as you canDon't hesitate when buying stocks
- 6. Multiple ChoiceYour credit score will be significantly lowered if youYou miss a loan paymentBuy a houseTake out a loanGo to college
- 7. Multiple ChoiceYour house cost 100,000. You put 20% down. What is your down payment?10,00020,000100,000120,000
- 8. Multiple Choice
A key difference between saving and investing is
Saving is for everyone, investing is for the wealthy
Your money is insured when investing, it is not in savings
Investing has a guaranteed return, savings does not
Saving is for emergencies & goals, investing is for long-term wealth
- 9. Multiple Choice
Which would be considered the highest risk investment type?
Stock
Mutual Fund
Bond
Money Market Account
- 10. Multiple Choice
The relationship between risk and return can be stated as
Higher risk indicates higher return
Higher risk indicates lower return
Lower risk indicates higher return
No relationship exists between risk and return
- 11. Multiple Choice
You would generally be willing to accept more risk in your investments if
your time horizon was relatively short.
you were highly risk-averse.
you expected to earn a higher rate of return in exchange for acceptance of the risk.
all of these
- 12. Multiple Choice
Which of the following is true with regard to gross pay and net pay?
Net pay is gross pay minus savings.
Gross pay is usually less than net pay.
Net pay is gross pay minus deductions.
Net pay is gross pay plus Social Security contributions.
- 13. Multiple Choice
Which of the following is NOT one of the rules for building wealth?
Save and invest early and often.
Invest for the short haul.
Don't leave money on the table.
Diversify your investments.
- 14. Multiple ChoiceWhich is NOT a typical goal for a savings account?To create an emergency fundTo pay for higher educationTo save for a new carTo buy groceries for this week
- 15. Multiple ChoiceWhat is a good strategy to help you save?1st, spend money on all expenses; put the rest into savingTap into your savings on a regular basis to purchase small items, like snacksPay yourself first - set aside money for savings each monthKeep your spending and saving money together in 1 account
- 16. Multiple Choice
What is a reason for why so many Americans live paycheck-to-paycheck?
Many people are paying themselves first and then spending
Many people only buy what they NEED, not what they WANT
Many people impulse shop
Many people spend within their budget
- Answer choicesTagsAnswer choicesTags