Savings & Investing Test Review

A key difference between saving and investing is

• Saving is for everyone, investing is for the wealthy

• Your money is insured when investing, it is not in savings

• Investing has a guaranteed return, savings does not

• Saving is for emergencies & goals, investing is for long-term wealth

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

Which would be considered the highest risk investment type?

• Stock

• Mutual Fund

• Bond

• Money Market Account

The relationship between risk and return can be stated as

• Higher risk indicates higher return

• Higher risk indicates lower return

• Lower risk indicates higher return

• No relationship exists between risk and return

Act of purchasing assets (stocks, bonds, property) with expectation that they will increase in value over time.

• Withdrawing
• Depositing
• Time Value of Money
• Investing

Tags

CCSS.HSF-IF.C.7E

The portion of income not spent on current expenditures:

• Savings
• Net income
• Gross income
• Financail goal

A strategy of setting aside money for saving before spending any money is known as

• Time value of money
• Rule of 20
• The rule of thumb
• Pay yourself first

These are the distribution of profits from a company to the stockholders

• Dividends
• Options
• Stocks
• Bonds

Which of the following is the reason why you invest your money?

• Save for retirement

• Save for college

• Save for a big purchase

• All of the above

Which of the following is generally true about 401(k) and 403(b) retirement plans?

• They are plans offered through employers.

• They offer some tax benefits.

• They restrict when you can withdraw your money.

• All of the above

Dylan is preparing a presentation about saving and he must include an explanation of compounding interest. Which statement best reflects the best definition?

• Interest earned on the principal investment

• Any form of interest earned from saving or investing

• Earning interest on interest