Saving/Investing Question Preview (ID: 19210)
Saving And Investing Test Review Questions.
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ETF stands for
a) Equity-Traded Funds. ETFs are index funds that are traded like stocks.
b) Exchange-Traded Funds. ETFs are index funds that are traded like stocks.
c) Electronically-Traded Funds. ETFs are mutual funds that are traded on the NYSE.
d) Employee-Traded Funds. ETFs are mutual funds that you receive from your employer to save for retirement.
A bond is:
a) A type of investment that is only offered by depository institutions.
b) A share of ownership in a company.
c) A type of investment that has the potential for significant fluctuations over a short period of time.
d) A type of debt that a company issues to investors for a specified period of time.
Which statement below is true about mutual funds?
a) Mutual funds are convenient and professionally managed.
b) You can choose which stock to include in your mutual funds.
c) Mutual funds offer guaranteed returns.
d) All mutual funds buy stocks.
Kyle has a aggressive investment philosophy. Which one of the following types of investments would Kyle most likely invest?
a) stocks
b) commodities
c) CDs
d) index funds
The most common relationship between risk and return in investing can be stated as:
a) No relationship exists between risk and return
b) lower risk indicates higher return
c) higher risk indicates lower return
d) higher risk indicates higher return
Which of the following statements is true in regards to paying taxes on investments?
a) Since investments are considered unearned income, taxes do not have to be paid on earnings.
b) Taxes only have to be paid on employer-sponsored investment accounts.
c) Taxes are always paid on investments either when the money is placed in the investment or removed from the investment.
d) Taxes are often owed on profits generated from investments.
If an investor can earn 8 percent interest on an investment, approximately how long will it take it to double in value?
a) 8 years
b) 9 years
c) 12 years
d) 72 months
Which of the following is a feature of a certificate of deposit (CD)?
a) Funds deposited in a CD can be accessed via check or debit card.
b) Funds deposited in a CD are held for a certain length of time.
c) Funds deposited in a CD have tiered interest rates.
d) Funds deposited in a CD are very liquid.
When saving for an emergency, it is important to keep your savings liquid.
a) True
b) False
c)
d)
Commodities are a riskier investment than Mutual Funds.
a) True
b) False
c)
d)
The time value of money relates directly to time, money, and rate of interest.
a) True
b) False
c)
d)
Someone who has a conservative investment philosophy would most likely invest in CDs, MMAs, Options, Futures, and Commodities.
a) True
b) False
c)
d)
Bonds are an example of a growth investment.
a) True
b) False
c)
d)
Capital gain is unearned income received from the sale of an asset above its purchase price.
a) True
b) False
c)
d)
Most wealthy people have gained their fortunes by winning the lottery or inheriting a large sum of money.
a) True
b) False
c)
d)
A stock ticker symbol is the unique alphabetic name which identifies a stock.
a) True
b) False
c)
d)
All are examples of the different types of returns from investments EXCEPT
a) interest
b) capital gains
c) principles
d) rents
Which one of the follow is not an example of investing?
a) buying a car to get to work
b) buying rental property
c) buying a tow truck with a blade to start a towing and snow removal service
d) buying a business to open an ice cream shop
When buying a stock, you are better off investing all of your money at once instead of investing your money in intervals over a period of time.
a) True
b) False
c)
d)
To calculate simple interest, use the formula I = P x R x T.
a) True
b) False
c)
d)
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