Finance Quiz

What is a mutual fund?

• A savings account with a fixed interest rate

• An investment company

• A fee for early withdrawal of funds

• A type of bank loan

What is stock?

• A fee for early withdrawal

• A share of a company owned by an investor

• An interest-bearing certificate

• A type of savings account

Which of the following is NOT a way to access checking account funds?

• Checks

• Debit card

• Electronic banking

• Savings bonds

What happens if you take your money out of a CD early?

• You earn more interest

• You pay a penalty

• You lose all your money

• Nothing happens

What is the goal when selling shares of stock?

• To sell at a lower price

• To sell at the same price

• To sell at a higher price

• To never sell

What is a dividend?

• A portion of a company's profit paid to shareholders

• Money lent to a company or government

• A type of mutual fund

• A government bond

How does a mutual fund help reduce risk?

• By investing in a single stock

• By diversifying investments across many stocks

• By lending money to the government

• By paying high dividends

What is the Standard & Poor’s 500 (S&P 500)?

• A type of mutual fund

• A stock market index

• A government bond

• A company dividend

What is considered the safest of all investments?

• Stocks

• Mutual funds

• Government bonds

• Dividends

What is the purpose of an index in finance?

• To measure the performance of mutual funds

• To calculate dividends

• To lend money to companies

• To manage individual stocks