Chapter 4

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

• certificate 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 investments 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

• certificates of deposit

The money you pay for an insurance policy is called your

• dividend

• coverage

• premium

• copay

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

• Auto

• Health

• Disability

• Long-term care

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

• Homeowners or renters

• health

• disability

• long-term care