Assessment 5 - Budgeting to Personal Taxes - September 5, 2024

Timmie is considering investing in a new business venture. Which of the following is the potential risk of losing something of value?

• Reward

• Requirement

• Return

• Risk

Trashayla is learning about different types of interest in her finance class. Which of the following is interest computed on the principal, excluding previously earned interest?

• Simple interest

• Fixed interest

• Compound interest

• Variable interest

Which of the following regulates money market funds?

• FDIC

• FBI

• PBS

• SEC

William is looking to manage his investment risks. Which of the following is a risk management technique which spreads assets into a portfolio with a wide variety of investments?

• Compounding

• Appreciation

• Diversification

• Investment

Dylan is learning about different types of investments. Which of the following types of returns are inversely related to interest rates?

• Bond

• Mutual fund

• Stock

• Bonus

Temika and Christina are discussing investment options. Which of the following is a correct statement about mutual funds?

• It is more risky than individual stocks and bonds

• It is managed by investors

• It is made up of a pool of funds collected from many investors

• It puts assets together into one security

Which of the following is an employer-sponsored retirement savings plan?

• Money market fund

• 401K plan

• Annuity

• Savings account

Which of the following is a saving certificate with a fixed maturity date and specified fixed interest rate?

• Money market fund

• High-yield bank account

• Certificate of deposit

• Annuity

Which of the following involves restricting expenses and keeping the unspent money in an individual's custody to accumulate it?

• Compounding

• Saving

• Investing

• Evaluating

Tiara wants to invest in an asset that she can quickly buy in the market without affecting the asset's price. Which of the following describes this characteristic?

• Cash flow

• Liquidity

• Interest

• Value