ITB: Savings, Bonds, & Mutual Funds

Which of the following is NOT a reason to save?

• to help the economy grow

• for emergencies

• for short-term goals

• for long-term goals

What % of your income should you Pay Yourself First (save)?

• 5%

• 10%

• 20%

• 50%

Which of the following is NOT true?

• for investment, you should start early

• for investment, you should diversify

• there is a direct relationship between risk and reward

• there is no relationship between risk and reward

Which is more risky according to the Financial Planning Pyramid?

• collectibles

• blue chip stocks

• mutual funds

• US savings bonds

Which will have a lower return on investment (ROI)?

• savings

• stocks

• bonds

• real estate

What type of interest will earn "interest on your interest"...and your principle?

• simple

• compound

• exponential

• basic

You have $1,000,000. You want to know how long it will take you to double your money with an 8% interest rate.

• 125 years

• 10 years

• 9 years

• 8 years

What equation helps you find how long or what interest rate you need to double your money?

• Rule of 52

• Rule of 72

• Rule of Diversity

• the Compound Interest Formula

Which is a corporate IOU?

• bonds

• stocks

• bank accounts

Which one gives you ownership, or "share", in a company?

• bonds

• stocks

• bank accounts