WorksheetsSaving & Investment Strategies Final Assessment
Total questions: 10
Worksheet time: 5mins
Which of the following describes the degree to which an asset can be quickly bought in the market without affecting the asset’s price?
Liquidity
Cash flow
Value
Interest
Which of the following involves restricting expenses and keeping the unspent money in one’s own custody for the purpose of accumulating it?
Investing
Compounding
Saving
Evaluating
Which of the following is interest calculated on the initial principal as well as the accumulated interest of previous periods?
Compound interest
Simple interest
Fixed interest
Variable interest
How much would $10,000 on deposit at a five percent annual simple interest rate for three years earn?
$1,250
$1,500
$1,576.25
$2,576.25
Which of the following is a saving certificate with a fixed maturity date and specified fixed interest rate?
Money market fund
Certificate of deposit
High-yield bank account
Annuity
Which of the following is an employer-sponsored retirement savings plan?
401K Plan
Annuity
Money market fund
Savings account
Which of the following is considered to be a long-term goal?
Purchasing household furniture
Saving up for a family vacation
Saving for a college education
Establishing an emergency fund
Which of the following is a correct statement about mutual funds?
It is made up of a pool of funds collected from many investors
It is managed by investors
It is more risky than individual stocks and bonds
It puts assets together into one security
Which of the following types of returns are inversely related to interest rates?
Stock
Bonus
Bond
Mutual fund
Which of the following is a risk management technique which spreads assets into a portfolio with a wide variety of investments?
Compounding
Diversification
Appreciation
Investment
