Investment Benefits Quiz

If Marcus invests in an account that yields 8% growth annually, how long will it take for his investment to double?

• 9 years

• 10 years

• 13 years

• 15 years

What is a disadvantage of a Bank Savings Account?

• Funds are not accessible for a set period of time.

• Accounts frequently require a minimum deposit and a higher minimum balance to avoid fees.

• Interest rates are lower than other account types.

• High withdrawal fees.

What is a disadvantage of a Money Market Account?

• Accounts frequently require a minimum deposit and a higher minimum balance to avoid fees.

• Funds are not accessible for a set period of time.

• Interest rates are lower than other account types.

• Limited check-writing ability.

What is a disadvantage of a Certificate of Deposit?

• Interest rates are lower than other account types.

• Accounts frequently require a minimum deposit and a higher minimum balance to avoid fees.

• Funds are not accessible for a set period of time.

• No disadvantages.

What is a disadvantage of a Bank Savings Account?

• Interest rates are lower than other account types.

• Funds are not accessible for a set period of time.

• Accounts frequently require a minimum deposit and a higher minimum balance to avoid fees.

• No disadvantages.

Which account type is known for having funds locked for a specific duration?

• Bank Savings Account

• Certificate of Deposit

• Money Market Account

• Checking Account

Which account type is associated with requiring a minimum deposit?

• Certificate of Deposit

• Money Market Account

• Bank Savings Account

• Checking Account

Which account type is best for someone who does not want their funds locked for a period?

• Certificate of Deposit

• Money Market Account

• Bank Savings Account

• Checking Account

Which statement provides evidence for the answer to Part A?

• "the venture involved trading in a highly profitable market niche that she had discovered"

• "Jane decided to invest a portion of her retirement savings with Annie"

• "she was using the funds from new investors to pay returns to earlier investors"

• "eventually, the influx of new investors slowed down"

Why are saving and investing important parts of a financial plan?

• They provide an individual a way to avoid acquiring an expensive loan.

• They help an individual reduce interest rates on loans.

• They help an individual avoid paying income taxes.

• They allow an individual to accumulate resources to achieve long-term goals.