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QUIZ 2.1

Total questions: 20

Worksheet time: 9mins

Name
Class
Date
1.

A key difference between saving and investing is

a)

Saving is for everyone, investing is for the wealthy

b)

Your money is insured when investing, it is not in savings

c)

Investing has a guaranteed return, savings does not

d)

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

2.

Which would be considered the highest risk investment type?

a)

Stock

b)

Mutual Fund

c)

Bond

d)

Money Market Account

3.

The relationship between risk and return can be stated as

a)

Higher risk indicates higher return

b)

Higher risk indicates lower return

c)

Lower risk indicates higher return

d)

No relationship exists between risk and return

4.

The face value of a bond is called

a)

Principal

b)

Coupon

c)

Par Value

d)

Maturity Date

5.
—Buying little pieces of a whole lot of different companies
a)
Stocks
b)
Bonds 
c)
Mutual funds
d)
T-bills
6.
Savings account with higher interest rate (variable rate)
a)
Certificate of Deposit
b)
Regular savings
c)
Money market 
d)
Money order
7.

Savings is a short-term commitment to meet unexpected shortfalls.

a)

True

b)

False

8.

What is investing?

a)

A short-term commitment to meet unexpected shortfalls. Helps meet short-term goals.

b)

A long-term approach to watch your money grow. Helps you meet long-term goals.

9.
A low-interest loan that doesn't need to be paid back right away is most likely a
a)
Mortgage
b)
Student loan
c)
Car loan
d)
Payday loan
10.
When you take out a mortgage, what are you putting up as collateral
a)
Your principal
b)
Your interest
c)
Your house
d)
Your down payment
11.

The money that is borrowed from a bank or charged on a credit card is referred to as

a)

Term

b)

Principal

c)

Interest

d)

Installment

12.

The percentage of money you pay to use (borrow) someone else's money.

a)

Taxes

b)

Prinicpal

c)

Compounds

d)

Interest

13.

Interest that is only paid on the principal is called...

a)

Simple Interest

b)

Compound Interest

c)

Standard Interest

14.

A credit card is an example of which type of credit?

a)

Revolving Credit

b)

Installment Credit

c)

Cash Loan

d)

Service Credit

15.

Electricity in your home is an example of which type of credit?

a)

Revolving Credit

b)

Installment Credit

c)

Cash Loan

d)

Service Credit

16.

Withdrawing cash on your credit account is called...

a)

Loan

b)

Cash Advance

c)

Micro-transaction

d)

A Bad Idea

17.

A fee for processing a loan is called...

a)

Down Payment

b)

Annual Fee

c)

Origination Fee

d)

Pre-Payment Penalty

18.

A time period before interest starts accumulating on charged purchases.

a)

Grace Period

b)

Minimum Payment

c)

Over-the-Limit Period

d)

Free Period

19.

Any person who is able to use your credit card, but is not legally responsible for the balance?

a)

Cosigner

b)

Joint Account Holder

c)

Authorized User

d)

Dependent

20.

Any use of a credit card without the intent of repaying the money borrowed is called...

a)

Gamesmenship

b)

Credit Card Fraud

c)

Hustling

d)

Credit Card Theft