Chapter 12 Applied Mathematics Test

A CD will earn more money than a savings account.

• True, most of the time.

• False

There is a penalty for early withdrawl from a CD.

• True

• False

It is better to have a high APY than a low APY.

• True

• False

What is APY? Choose 2 correct answers.

• Annual Percentage Yield

• A party! Yay!!

• The rate of return on your money for a one year period

• The same as compound interest

When you purchase a stock you become a part owner of the company.

• True

• False

Stocks are the safest way to invest your money.

• True

• False, you should only invest as much as you can afford to lose.

You have to sell your stock to actually make money.

• True

• False, you can earn from the dividends.

A dividend is...

• the money you earn as a shareholder of the company

• the certificate of deposit

• the annual percentage yield

• your age factor

A mutual fund is offered by an investor and accumulates the savings of many individuals.

• True

• False

Some mutual funds are....

choose two

• front loading

  pay a percentage at the beginning

• back loading

  pay a percentage at the end

• middle loading you pay a percentage every 6 months

• free loading

  not loaded