Chapter 14 Business Quiz

The 4 reasons why people save are:

• so that when they pass away their children will be financially stable

• emergency needs, goals, security, and future needs

Saving means...

• safely putting $ aside for the future in a bank.

• buying proline tickets

Investing is

• putting your $ into a bank account.

• using your savings to earn extra income.

True or False? Savings are protected.

• True

• False

True or False? Investments can be lost completely.

• True

• False

Stocks, mutual funds, bonds, and collectibles are all examples of:

• Savings

• Investments

True or False? Simple interest is calculated only on the PRINCIPAL--the amount you DEPOSITED

• True

• False

True or False? COMPOUND interest is calculated on the PRINCIPAL plus any INTEREST already earned.

• True

• False