Savings and Investing Basics

Which of the following describes the rate at which the general level of prices for goods and services rises?

• Liquidity

• Interest

• Inflation

• Appreciation

Which of the following is the act of buying an asset to generate returns over a period of time while also managing risk and volatility?

• Investing

• Saving

• Compounding

• Evaluating

Which of the following is interest computed on the principal, excluding previously earned interest?

• Fixed interest

• Compound interest

• Variable interest

• Simple interest

How much would $10,000 on deposit at a five percent annual compound interest rate for three years earn?

• $1,500

• $1,250

• $1,576.25

• $2,576.25

Which of the following are intermediaries between buyers and sellers to facilitate security transactions?

• Insurance companies

• Brokerages

• Commercial banks

• Investment banks