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WorksheetsFP I Unit 2 Test Review
Total questions: 20
Worksheet time: 10mins
Investors take a risk for the potential of receiving a:
A bonus.
B. prize.
C. promotion.
D. return.
Ownership investments are ideal for investors who are:
A risk-averse.
B. risk-tolerant.
C. close to retirement.
D. just beginning to invest.
Which is an advantage of a money market account over a savings account?
A The rate of return on a money market account is significantly better.
B. Money market accounts provide corporate ownership rights.
c. One can often write checks from a money market account.
D. Money market accounts are insured by the FDIC.
The purpose of the risk pyramid is to show a comparison of:
one stock to another.
one investment to another.
C. stocks to stock mutual funds.
D. corporate bonds to municipal bonds.
One of the biggest risks to a real estate investment is:
A depreciation.
B. a low rate of return.
C. lacking FDIC insurance.
D. the inability to write checks.
Which statement is true about certificates of deposit?
A They may depreciate in value.
B. The riskiest investment is a certificate of deposit.
c. One must pay a penalty for withdrawing money early.
D. Certificates of deposit are issued by corporations or governments.
A disadvantage of owning stocks is the:
A high degree of risk.
B. low potential for return.
C. penalty for early withdrawal.
D. potential for loss of time and effort.
In investing, legal lending or owning agreements between individuals, businesses, or governments are known as:
A bonds.
B. guarantees.
C. securities.
D. treaties.
Which is an example of a lending investment?
A bonds
B. stocks
C. antiques
D. real estate
With a lending investment, investors:
A avoid taking any risk.
B. hire a financial advisor.
C. allow borrowers to use their money for a price.
D. maintain a minimum amount of money in the investment.
The direction of a client's cash and securities by a financial services company, usually an investment bank, or an individual is known as:
a lockbox.
vendor lease.
private placement.
asset management.
Which is a disadvantage of investing in a savings account?
A The account's potential for loss is high.
B. The rate of return fails to keep up with inflation.
c. One must pay a penalty for withdrawing money early.
D. A minimum balance is required to keep the account active.
Successful bank managers and supervisors typically began their employment as:
A apprentices.
B. programmers.
C. tellers.
D. volunteers.
A marketplace where trading of securities such as equities, bonds,
currencies, and derivatives occurs is referred to as a:
call market.
bear market.
financial market.
foreign exchange market.
What type of service does a bank provide to a business that needs to borrow funds for a short period of time?
mortgage
line of credit
installment loan
certificate of deposit
Marcus wants to invest a portion of his money in long-term securities to
finance his son's college education and his own retirement. To help him
make the best investment decisions, Marcus should obtain the services
of a:
loan officer.
licensed tax accountant.
certified financial planner.
credit-union representative.
Chris wants to open a small business, and he has a very good business
plan that is likely to succeed. Where would Chris be most likely to go to
apply for a loan?
local bank
national bank
insurance provider
mortgage company
In which financial market do people make investments in cocoa beans
and corn?
money
insurance
soft commodities
selective property
A level of performance that describes using the least amount of input to
achieve the highest amount of output is known as:
commodity.
efficiency.
liquidity.
market.
Brian recently got his first part-time job as a food bagger at a local
grocery store. He needs a safe place to store his income that allows him
to withdraw money easily and frequently. Brian should consider opening
which type of account?
savings
checking
health savings
individual retirement
