Unit 2 Saving, Investing & Risk Mgmt Test

When it comes to personal savings, what does the acronym PYF stand for?

• Pay Your Friends

• Prepare for your future

• Pay Yourself First

• Prepay Your Finances

Which of the follow is something you learned about saving and investing?

• The degree of risk

• How Easy it is to get your money

• The rate of return

• All the above

A saver who wants her savings insured by the FDIC (Federal Deposit Insurance Corporation) wants to use this savings option.

• Stocks

• Bonds

• Mutual Funds

• Savings Account

This type of investment is essentially an IOU with a set rate of return.

• Money Market Acct

• Stock

• Bond

• Certificate of Deposit

Protection against risk is the primary reason people purchase this type of insurance policy.

• Auto

• All the Above

• Health

• Home

Chris if off to college this fall, but he has discovered that under his parents health policy he is only covered for emergency medical care while at school. Should Chris consider purchasing additional medical insurance just in case he needs it? Explain your answer.

Short or Long Term? Savings Accounts

Short or Long Term? Money Market Accounts

Short or Long Term? Stocks

Short of Long Term? Mutual Funds