Wk 7 Exam(makeup)-Saving&InvestmentStrats-Due: 12/30/20

Which of the following describes the rate at which the general level of prices for goods and services rise?

• Liquidity

• Interest

• Inflation

• Appreciation

Which of the following is the act of buying an asset to generate returns from it over a period of time while also taking care of risk and volatility?

• Investing

• Saving

• Compounding

• Evaluating

Which of the following is interest computed on the principal, excluding previously earned interest?

• Fixed interest

• Compound interest

• Variable interest

• Simple interest

How much would $10,000 on deposit at a five percent annual compound interest rate for three years earn?

• $1,500

• $1,250

• . $1,576.25

• $2,576.25

Which of the following are intermediaries between buyers and sellers to facilitate security transactions?

• Insurance companies

• Brokerages

• Commercial banks

• Investment banks

Which of the following describes the degree to which an asset can be quickly bought in the market without affecting the asset’s price?

• . Liquidity

• Cash flow

• Value

• . Interest

Which of the following involves restricting expenses and keeping the unspent money in one’s own custody for the purpose of accumulating it?

• Investing

• Compounding

• Saving

• Evaluating

Which of the following is interest calculated on the initial principal as well as the accumulated interest of previous periods?

• Compound interest

• Simple interest

• Fixed interest

• Variable interest

How much would $10,000 on deposit at a five percent annual simple interest rate for three years earn?

• $1,250

• $1,500

• $1,576.25

• $2,576.25

Which of the following is a saving certificate with a fixed maturity date and specified fixed interest rate?

• Money market fund

• Certificate of deposit

• High-yield bank account

• Annuity