UNHS Career Planning- Self Check 13

Part A: Multiple-Choice

Select the response that best completes the statement or answers the question.

1. The first step in developing a budget is to

• a. get a job.

• b. establish goals.

• c. estimate expenditures.

• d. open a checking account.

Part A: Multiple-Choice

Select the response that best completes the statement or answers the question.

2. One of the best ways to save money is to

• a. pay yourself first.

• b. get a second job.

• c. deposit your income tax refund in the bank.

• d. quit going out on weekends.

Part A: Multiple-Choice

Select the response that best completes the statement or answers the question.

3. In investing, the best way to balance risks is to

• a. buy U. S. savings bonds.

• b. hire a financial adviser.

• c. buy money market funds.

• d. diversify investments.

Part A: Multiple-Choice

Select the response that best completes the statement or answers the question.

4. A budget should be based on your

• a. gross income.

• b. net income.

• c. expenditures.

• d. savings.

Part A: Multiple-Choice

Select the response that best completes the statement or answers the question.

5. Which type of investment represents a loan to a company or government agency, in return for which interest is paid?

• a. bond

• b. stock

• c. certificate of deposit

• d. time deposit

Part A: Multiple-Choice

Select the response that best completes the statement or answers the question.

6. A mutual fund is an investment company that pools the money of thousands of investors and buys a collection of stocks called a(n)

• a. diversification.

• b. investment club.

• c. money market fund.

• d. portfolio.

Part A: Multiple-Choice

Select the response that best completes the statement or answers the question.

7. A stock that was bought for $20 a share and sold for $25 a share has a(n) __________ of $5.

• a. dividend

• b. interest

• c. capital gain

• d. APY

Part A: Multiple-Choice

Select the response that best completes the statement or answers the question.

8. A profit a company divides among its shareholders is a

• a. dividend.

• b. growth stock.

• c. capital gain.

• d. commission.

Part A: Multiple-Choice

Select the response that best completes the statement or answers the question.

9. The United States federal government helps pay its bills by selling

• a. U.S. stock.

• b. U.S. mutual funds.

• c. U.S. certificates of deposit.

• d. U.S. bonds.

Part A: Multiple-Choice

Select the response that best completes the statement or answers the question.

10. What would be the return on a $1,200 savings account paying an APY of 8.5 percent?

• a. $120

• b. $102

• c. $100

• d. $85