CGHS | CH. 12 Vocab Quiz

What is the act of choosing not to spend current income called?

• Investing

• Saving

• Diversification

• Spending

What is the income earned from funds that are not spent?

• Return

• Deductible

• Liability

• Policy

What is computed on the amount saved plus the interest previously earned?

• Annual percentage yield

• Compound interest

• Corporate bonds

• Money market account

What formula do banks use to calculate interest they pay on deposits?

• Certificate of deposit

• Corporate stock

• Annual percentage yield (APY)

• Mutual fund

What is a savings instrument with a fixed interest rate and fixed maturity date?

• Money market account

• Certificate of deposit (CD)

• Corporate bonds

• Personal insurance

What type of account allows depositors a limited number of transactions per month?

• Corporate stock

• Money market account

• Mutual fund

• Deductible

What is using your savings in a way that earns a return called?

• Saving

• Investing

• Diversification

• Insurance

What represents shares of ownership in a corporation?

• Corporate stock

• Corporate bonds

• Mutual fund

• Policy

What is investing in a wide variety of firms called?

• Saving

• Diversification

• Deductible

• Liability insurance

What is a financial organization that accepts funds from many people and invests them in a variety of stocks?

• Corporate bonds

• Mutual fund

• Money market account

• Personal insurance