Saving and Investing Quiz

What is an IOU issued by a company, municipality, or the federal government in exchange for a loan from an investor that will be repaid with a set rate of interest?

• Stock

• Bond

• Mutual Fund

• Savings Account

Which term refers to a business that provides money-related services?

• Financial Institution

• Insurance Policy

• Principal

• Premium

What is the fee received or paid for the use of money called?

• Premium

• Interest

• Risk

• Principal

What does it mean to commit money to gain a profit or earn interest?

• Save

• Invest

• Pay Yourself First

• Deductible

What does "Pay Yourself First (PYF)" mean?

• To save all your money

• To automatically save a specified amount from a paycheck for future use

• To spend money on luxuries first

• To pay off all debts first

What is a collection of stocks or bonds of various corporations called?

• Stock

• Mutual Fund

• Savings Account

• Bond

What is the next best alternative given up when making a financial choice?

• Risk

• Principal

• Opportunity Cost

• Premium

What is the amount of money originally invested called?

• Interest

• Principal

• Premium

• Deductible

What is the possibility of financial loss or physical harm referred to as?

• Risk

• Premium

• Deductible

• Interest

What is an interest-bearing account where people put money for future use called?

• Stock

• Bond

• Savings Account

• Mutual Fund