PF Savings and Invest Options Test Review

What is a bank account that locks or ties up your money for a certain period of time?

• Savings Account

• Checking Account

• Certificate of Deposit

• Money Market

What is a bank account that gives you limited access, but a better rate than the average account.

• Savings account

• Checking account

• Certificate of Deposit

• Money Market

What is the best long term investment because is it automatically diversified?

• Stocks

• Bonds

• Mutual Funds

• Real Estate

When you buy ownership in a company you have purchased what?

• Stock

• Bond

• Mutual Fund

• Real Estate

When a company wants to raise capital without giving away any ownership, they will borrow money from investors in the form of a what?

• Stock

• Bond

• Mutual Fund

• Real Estate

What is the name of an investment where you put your money in stuff like corn, or wheat, or soybeans?

• Stocks

• Bonds

• Commodities

• Real Estate

An emergency fund should be about how much money?

• $200

• $1000

• 3-6 months of expenses

• 18-24 months of expenses

Interest on Interest is called . . . . . .

• Simple interest

• Complicated Interest

• Compounded Interest

• Systematic interest

The two keys to building wealth as demonstrated in the Ben and Arthur chart are . . . . . .

• Luck and Fortune

• Lottery and gambling

• Time and Rate

• Time and Luck

If you save $4000 in a CD for 3 years at 4.3% interest compounded annually, how much would you end up with?

• $4,538.51

• $11,696.83

• $12,516

• $3,525.39