Saving and Investing

The following type of bank account has a predetermined deposit amount, interest rate, and time period.

• certificate of deposit
• checking account
• savings account

It is best to buy a stock when the price is low and sell when it is high

• True
• False

People should consider saving money for which of the following reasons?

• Emergency situations
• For retirement
• For a vacation
• All of the above

When saving and investing, the higher the risk the greater the reward; the lower the risk the ______ the reward

• Higher
• Lower

Which of the following is the best example of an entrepreneur?

• Marcus has been an insurance agent for 50 years
• John opens his own furniture store which successfully had made high income
• Jennie is a student at the local community college
• Sally is a dentist

When society is experiencing inflation

• Prices are higher
• Prices are the same
• Prices are lower

Examples of investing include all of the following except

• Buying stocks
• putting money under your mattress
• placing money in a savings accounts

Which of the following investments would carry the most risk?

• stock market investment
• Savings bond
• Savings account
• Checking account