Chapter 4 Test

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

• Short-term savings goals

• Long-term savings goals

This type of investment is considered a debt instrument

• Stocks

• Bonds

• Mutual funds

• Certificates of deposit

This type of investment represents small pieces of ownership in a company

• Stocks

• Bonds

• Mutual Funds

• Certificates of Deposit

This type of investment involves a pool of money collected from a group of investors

• Stocks

• Bonds

• Mutual Funds

• Certificates of deposit

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

• Stocks

• Bonds

• Mutual funds

• Certificates of deposit

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

• Stocks

• Bonds

• Mutual funds

• Certificates of deposit

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

• Stocks

• Money Market Account

• Mutual funds

• Certificate of deposit

The money you pay for an insurance policy is called your

• Divident

• Coverage

• Premium

• Copay

Which of the following types of insurance would comver your costs associate with a car accident?

• Auto

• Health

• Disability

• Long-term care

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

• Homeowners or Renters

• Health

• Disability

• Long-term care