5.02 Saving and investing quiz

Municipal bonds are issued by what?

• state and local governments

• the federal government

• corporations

• nonprofit organizations

An investor owns a piece of the company when he/she buys what?

• bonds

• certificates of deposit

• mutual funds

• stocks

What is considered a low-risk investment?

• Stocks

• certificates of deposit

• mutual funds

• junk certificates

Which statement is FALSE?

• Investing is beneficial to the economy.

• Financial intermediaries are beneficial to investors.

• Bonds are a high-risk type of investment.

• Certificates of deposit earn more interest than savings accounts.

Many companies depend on the sale of shares of stock when they what?

• want to downsize

• want to expand

• are being audited

• hire a new president or executive on the board

Risky investments

• Are meant to make small returns on investment
• May lead to a larger return on investment
• Are always long-term
• Involve checking accounts

A mutual fund is 

• An investment in a diversified group of stocks
• The money left over when reinvested into the company
• An account that guarantees a fixed rate of return
• Exclusively for retirement accounts

Which is the least risky?

• Stock
• CD
• Savings account
• Mutual fund

Your credit score will be significantly lowered if you

• You miss a loan payment
• Buy a house
• Take out a loan
• Go to college

Your house cost 100,000. You put 20% down. What is your down payment? 

• 10,000
• 20,000
• 100,000
• 120,000