Unit 4 Eco Test

Which of the following is an example of Dividends?

• Stock

• Bonds

• Cash

• Real estate

What are the impacts of starting investing early?

• you get less money

• investing early leads to exponential growth

• investing early leads to no growth

• Who cares about investing

What is the rule of 72?

• tool used to calculate how many years it takes for an investment to double

• tool used to calculate the interest rate to pay off credit card debt

• tool used to calculate compound interest

• tool used to calculate bankruptcy

What is the equation used for the rule of 72?

• 72 - interest rates

• 72 + interest rates

• 72 + number of years

• 72 / interest rates

What is a Short-Term savings goal- Emergency Funds?

• 3-6 month savings you put in a high yield saving account for living expenses in case of unplanned expenses like medical bills or car repairs

• sizable downpayment for a home

• mortgage or car loan that you might need in 10-15 year

• financially secure retirement investment including stocks, bonds, ETFs but you should have at least 2 years of expenses to support yourself when you are no longer working

• who cares about saving money YOLO

Which of the following investment is considered the MOST risky?

• Stock

• Savings Account

• Checking Account

• Roth IRA

Which of the following is considered to be the LEAST risky investment?

• Stock

• Bonds

• CDs

• Basics Savings Account

What is the benefit of contributing to Roth IRA, Traditional IRA, 401k?

• Financial instability

• Financial Stability

• Rule of 72

• Stock

What is a title loan?

• A short-term loan with a fixed interest rate and no collateral.

• A loan provided exclusively for home improvement projects.

• A loan secured by using the borrower's car title as collateral.

• A loan that requires a cosigner for approval.

What is a peer-to-peer loan?

• A loan secured by the borrower's personal assets.

• A loan offered by traditional banks to established businesses.

• Enables individuals to obtain loans directly from individuals. Cutting out the middle man

• A loan provided exclusively for home improvement projects.