Saving and Investment pretest

Saving and investing are the same thing

• True

• False

If you want to put money aside to buy a car, you should put it in which of the following:

• Savings account

• Mutual fund

• Stocks

Savings plans are riskier than most investment choices.

• True

• False

Ways to evaluate savings and investments typically include (select all that apply)

• Risk/return

• Liquidity

• Taxes

• Where I live

These show a small unit of ownership in a corporation

• Mutual funds

• Bonds

• Stocks

• Certificates of deposit

An advantage of a Certificate of Deposit over a regular savings account would typically include:

• Ease of getting to the money

• Slightly higher interest rate

• Lower taxes

• Easier to open the account

Which animal is associated with a rising stock market?

• 
• 
• 
• 

Which of the following would be considered the riskiest? (i.e. chance of losing your money)

• Savings accounts

• Money market accounts

• Treasury bills

• Stocks

Which is the best reason to start saving or investing early?

• You can benefit from the power of compound interest

• You can stop saving later in life

• You are not taxed on investments till you retire

• You have more disposable income

Which of the following typically can earn the most money over time?

• Certificates of Deposit

• Mutual funds

• Savings bonds

• Treasury bonds