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Investments Lessons 1 and 2 Grade 11

Total questions: 30

Worksheet time: 15mins

Name
Class
Date
1.

Money left after all expenses are paid

a)

savings

b)

investments

2.

The use of income today that allows for a future benefit

a)

saving

b)

investment

3.

S&L, commercial banks, and credit unions are banking financial intermediaries because they

a)

open saving and checking accounts

b)

provide loans

4.

the fastest multipurpose loans at a higher than average interest rate are provided by

a)

finance companies

b)

insurance companies

c)

credit unions

5.

What makes financial assets of the bank?

a)

saving accounts

b)

loans

6.

You invest into the comapany that earns by investing in many stocks and bonds

a)

mutual fund

b)

finance company

7.

Which financial intermediary is envolved in saving money for retirement?

a)

pension funds

b)

insurance companies

8.

Investments into assets less than 1 year

a)

money market

b)

capital market

9.

Buying assets directly from the emitent

a)

primarily market

b)

secondary market

10.

Earning money on principal and previously earned interest rate

a)

simple interest

b)

compound interest

11.

Earning money on principal alone

a)

simple interest

b)

compound interest

12.

Money on saving and checking accounts are resources bank us for loans

a)

yes

b)

no

13.

Finance companies use funds of clients to provide loans

a)

yes

b)

no

14.

If you want to secure yourself from risks of disability you should purchase a

a)

police in insurance company

b)

police in pension fund

15.

Nonbanking financial intermediaries earn money by

a)

investing in stocks

b)

investing in bonds

c)

providing loans

d)

opening saving accounts

16.

Saving accounts are expensive resources

a)

yes

b)

no

17.

Borrower looks for the ____ interest rate

a)

highest

b)

lowest

18.

Investor looks for the ____ interest rate

a)

highest

b)

lowest

19.

CDs, stocks, and bonds are

a)

economical investments

b)

personal investments

20.

Your financial goals are your

a)

objectives

b)

subjectives

21.

The lowest risk of loss have

a)

stocks

b)

governmental bonds

22.

As higher risk as

a)

higher are potential returns

b)

lower are potential returns

23.

Government or state bonds are considered risk free, and you don't need to pay income tax

a)

yes

b)

no

24.

You can lose purchasing power of your investments because of

a)

bankrupsy

b)

inflation

25.

You can lose your principal because of bankrupsy of the bank

a)

yes

b)

no

26.

Possibility of loss

a)

risk

b)

returns

27.

Before investing, you should thik about your income and time

a)

yes

b)

no

28.

Calculating amount of saving available for investments, you should always subtract money for "emergency"

a)

yes

b)

no

29.

Stocks and corporate bonds are considered risk free

a)

yes

b)

no

30.

Stocks and bonds can be resold many times

a)

yes

b)

no