PF 5.00 Saving And Investing (1 Of 2) Question Preview (ID: 34830)

5.00 Saving And Investing.

Which of the following is not true in regards to investing in stock?
a) stockholder will always receive a profit when stock is sold
b) stockholders may pay different prices for the same stock.
c) A stockholder may or may not receive a dividend.
d) A stockholder owns a part of a company.

Which correctly describes the security level of most savings tools?
a) They are secure; protected by the government against loss
b) They are not secure; they have a high risk of losing money
c) They're very secure; no risks at all in saving or investing
d) It would be safer to keep the money at home in a shoe box.

Which of the following savings tools is liquid and accessible?
a) Checking account
b) Certificate of deposit
c) Money market deposit account
d) Any of the above savings tools would help Hannah

When taking advantage of the time value of money, which likely results in the largest return?
a) Invest as long as possible at the highest interest rate
b) Invest a lots of money, then make no further investments.
c) Invest small amount for a short time at a high interest
d) Invest at a high interest rate; interest is the only factor

Who would he contact to purchase stocks?
a) A brokerage firm
b) The New York Stock Exchange
c) A real estate agent
d) Conner should complete this transaction on his own

Which statement best describes inflation?
a) The rise in the general level of prices
b) The uncertainty about the return on an investment
c) The number of times something happens to money
d) projected value of investment at the end of a specified time

A bond is:
a) debt that a company issues for a specified period of time.
b) A share of ownership in a company.
c) having fair (yellow) hair, and usually fair skin
d) British secret service agent (spy) with the designation 007

Which of the following is a feature of a certificate of deposit (CD)?
a) Funds are deposited in a CD for a certain length of time
b) Funds deposited in a CD have tiered interest rates.
c) Funds deposited in a CD are very liquid.
d) Funds in a CD can be accessed via check or debit card.

What is a Money Market Account he has that offers a tiered interest rate?
a) the higher the account balance the higher the interest rate
b) the more accounts he has, the higher interest rate
c) an illegal scam to trick people into investing money
d) The rate of interest earned increases over time

Which statement is most correct description of liquidity?
a) how quickly and easily an asset can be converted into cash
b) the amount of savings available
c) how much is owned once all debts have been paid
d) money needed to pay for the necessities and comforts

A diversified portfolio is desirable because it:
a) has less risk by investing in a variety of investment tools
b) limits investors choices to only 1 or 2 investment tools
c) shows an investor is a good predictor of investment's return
d) increases the risk/return ratio

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