Sloan Econ CCA 6

What is the name of the fee paid for an insurance policy?

• premium

• pension

• contribution

• interest

Which of the following are considered a “financial institution”?​

• a bank

• an insurance company

• ​a savings and loan

• all of the above

Which of the following financial organizations specializes in buying installment contracts from merchants who sell on credit?

• a credit union

• an insurance company

• a finance company

• a bank

The rate of return on a corporate, municipal, or government bond is its

• par value

• compensation rate

• interest rate

• coupon rate

What kind of fund collects and invests income for later payments to eligible recipients?​

• credit union fund

• insurance fund

• pension fund

• mutual fund

A money market investment is based on

• length of time the money is loaned

• amount of money loaned

• which market the money is invested in

• the risk of the investment

What does a mutual fund sell?

• stocks for individual investors

• shares of a portfolio of securities

• stocks in large corporations to individual investors

• stocks for investment houses

​Bond prices are determined by

• supply and demand and the buyer’s assessment of the bond’s par value

• supply and demand and the buyer’s assessment of the repayment risk

• the maturity life of a bond and its coupon rate

• the maturity life of a bond and its bond rating

Three ways people can save money with little risk include

• having a savings account, buying stock, buying certificates of deposit

• buying an insurance policy, contributing to a pension fund, buying stock

• ​having a savings account, buying certificates of deposit, buying

  an insurance policy

• buying an insurance policy, contributing to a finance company, buying certificates of deposit

​Most successful investors invest

• large amounts of money once in a while

• consistent contributions over a long period of time

• small amounts of money once in a while

• consistent contributions for a few months