Economics Practice

When many people invest and their money is pooled together to buy several stocks and bonds, that investment is known as a

• stockpile fund
• mutual fund
• group investment
• shared portfolio

.  Veruca has decided to purchase a house. She cannot afford to pay the entire payment, so she will need a mortgage that she can pay over time. What type of credit is this?

• Instalment Credit

• Revolving Credit

• Open Credit

• Penalty Credit

What is the investment that has the highest risk yet the highest potential for returns?

• Government bonds
• Real estate
• Individual stocks
• Cryptocurrency

If you were to make a financial investment, what would make it grow fastest?

• Simple Interest

• Real Estate

• Compound Interest

• Dividends

What is a mutual fund?

• A mutual fund is a type of clothing
• A mutual fund is an investment vehicle consisting of a portfolio of stocks, bonds, or other securities managed by a professional investment company.
• A mutual fund is a type of sandwich
• A mutual fund is a type of car

What will have the greatest effect on Veruca’s credit rating and will help determine her credit worthiness?

• Credit history
• Income level
• Number of social media followers
• Favorite color

. A non-profit financial institution that holds deposits and loans out money is known as a

• credit union
• mortgage lender
• investment firm
• bank

What are returns paid on a stock called?

• Interest
• Capital gains
• Dividends
• Principal

What type of insurance would you buy to make sure your family is financially stable if you were to die?

• Life insurance
• Home insurance
• Health insurance
• Car insurance

What type of insurance would you buy to make sure you will receive payments in case you are injured?

• Disability insurance
• Life insurance
• Car insurance
• Home insurance