Consumer Ed. Unit 4 - Saving and Investing Quiz

What is the necessity of saving?

• Protects you in a financial emergency

• Avoid debt

• Stress on you

• Legacy?

What is a stock?

• a loan an investor makes to a company

• a small portion of ownership in a company

• collection of investments sold by stock brokers

• an option to purchase soming in the future

What are the differences between savings and investment? (Choose 2)

• Saving - Putting money aside into a savings account at a bank.

• Investing - Aim of helping to make it grow by buying assets that might increase in value.

• Investing - Aim of helping to make it grow by buying stocks, property, or shares in a mutual fund.

• Saving - Aim of helping to make it grow by buying assets that might increase in value.

What is an IRA?

• Individual Retirement Association

• Independent Retirement Account

• Individual Retirement Account

• Investor Retirement Account

What are the factors affecting savings and investment choices?

Which is an example of a commodity?

• Clothing

• Technology

• Coins & stamps

• Farm products

What does rate of return in investments tell you?

• Stock value

• Total profit or loss in $$$

• Percentage of profit or loss

• Market volatility on that day

Why is liquidity important in investing and saving?

• Access to money

• Growth of money

• Ease of purchasing stocks

• Balance of assets and debt

1. Which is NOT sound financial advice?

• 1. Buy only technology stocks - It is the future!

• 1. Don't take money out of your retirement account until age 59.5 or later.

• 1. "Diversify" your money into a variety of investments

• 1. Start early

Stockbroker?

• 2. Investment or purchased item loses value over time

• 1. Product or investment owned by an individual.

• 3. Financial advisors that people may buy and sell most financial products.

• 4. Advisor, that is required by law, to manage investments with profits and 

       gains on the investment as their only means for the advisor to make 

       money.