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Saving and Investment pretest

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Saving and investing are the same thing

a)

True

b)

False

2.

If you want to put money aside to buy a car, you should put it in which of the following:

a)

Savings account

b)

Mutual fund

c)

Stocks

3.

Savings plans are riskier than most investment choices.

a)

True

b)

False

4.

Ways to evaluate savings and investments typically include (select all that apply)

a)

Risk/return

b)

Liquidity

c)

Taxes

d)

Where I live

5.

These show a small unit of ownership in a corporation

a)

Mutual funds

b)

Bonds

c)

Stocks

d)

Certificates of deposit

6.

An advantage of a Certificate of Deposit over a regular savings account would typically include:

a)

Ease of getting to the money

b)

Slightly higher interest rate

c)

Lower taxes

d)

Easier to open the account

7.

Which animal is associated with a rising stock market?

a)
b)
c)
d)
8.

Which of the following would be considered the riskiest? (i.e. chance of losing your money)

a)

Savings accounts

b)

Money market accounts

c)

Treasury bills

d)

Stocks

9.

Which is the best reason to start saving or investing early?

a)

You can benefit from the power of compound interest

b)

You can stop saving later in life

c)

You are not taxed on investments till you retire

d)

You have more disposable income

10.

Which of the following typically can earn the most money over time?

a)

Certificates of Deposit

b)

Mutual funds

c)

Savings bonds

d)

Treasury bonds