ch. 12 lesson 3

Which of the following is a long-term spending goal?

 

• paying the phone bill

• buying groceries

• buying a house

• going out to dinner

It is wise to put some money aside for expenses that you do not expect.

• true

• false

Which of the following is useful for paying monthly bills?

 

• savings account

• checking account

• money market account

• certificates of deposit

You must pay interest to keep your money in a savings account.

• true

• false

Which investment will likely offer the highest interest rate?

• certificates of deposit

• savings account

• money market account

• checking account

Which investment will likely carry the greatest risk?

 

• savings account

• money market

• certificate of deposit

• stocks

Shareholders are partial owners of a company.

• true

• false

You may receive a dividend payment if you own _________.

• bonds

• money market accounts

• stocks

• certificates of deposit

The government borrows money from citizens by selling them bonds.

• true

• false

The riskiest investment is a mutual fund.

• true

• false