Intro to Finance Chapter 3 & 4 Unit Test

A savings account should be used for your emergency fund and your ___________________________.

• short-term savings goals

• long-term savings goals

• vacation plans

• college tuition

This type of investment is considered a debt instrument:

• bonds

• mutual funds

• certificates of deposit

• stocks

Mutual funds represent small pieces of ownership in a company.

• True

• False

A type of savings account where you agree to leave your money alone for a period of time.

• bonds

• mutual funds

• certificates of deposit

• stocks

Which of the following types of investment carries the greatest risk?

• stocks

• money market account

• bonds

• mutual funds

Which of the following is the best place to keep your emergency fund?

• stocks

• money market account

• bonds

• mutual funds

The money you pay for an insurance policy is called your:

• dividend

• premium

• copay

• coverage

Which of the following types of insurance would cover costs associated with the theft of belongings from your house?

• Auto

• Health

• Disability

• Homeowners or Renters

Which of the following types of insurance would cover costs associated with surgery to treat a broken nose?

• Auto

• Health

• Disability

• Homeowners or Renters

Which of the following types of insurance would cover costs associated with a motorcycle accident?

• Auto

• Health

• Disability

• Homeowners or Renters