Savings and Investment Test

Front

A key difference between saving and investing is

Back

Saving is for emergencies & goals, investing is for long-term wealth.

Front

Why is compound interest more beneficial than simple interest?

Back

Your money grows faster when it is compounded.

Front

The rule of 72 is useful in calculating the

Back

time required to double an investment.

Front

The phrase "pay yourself first" means that you:

Back

Put money in your savings account before paying bills

Front

Which statement below is true about mutual funds? Options: mutual funds offer guaranteed returns, you can choose which stock to include in your mutual funds, mutual funds are diversified investments

Back

mutual funds are diversified investments

Front

A common mistaken belief about retirement is: You will have plenty of time to start saving for retirement.

Back

This belief is incorrect.

Front

The first step in becoming financially independent: Using credit so you can spend more than you earn, Spending less money than you earn, Spending ALL the money you earn

Back

Spending less money than you earn

Front

Which statement best describes inflation?

Back

The rise in general level of prices

Front

Which investment has low risk and a low rate of return? Options: Cash, Bonds, Stocks

Back

Cash

Front

What does risk mean in regard to investment?

Back

uncertain outcome