Savings and Investing
starstarstarstarstarstarstarstarstarstar
by Stephanie Foy
| 6 Questions
1
1
A savings account offers a very low risk of losing your money, however, you should expect
an uncertain rate of return.
a low rate of return.
a high rate of return.
a moderate rate of return.
2
1
You select a savings tool that is low risk, but requires you to leave your money in the account for at least one year. If you take it out early, they charge you a significant penalty. Which savings tool did you select?
Stock
Certificate of Deposit
Savings Account
Mutual Fund
3
1
Bria is a high school senior. She just inherited $5,000. She does not need to use the money now, and would instead like to invest the money in a tool that will give her the HIGHEST potential returns. Which of the following would be the best investment tool for Bria?
US Treasury bond
stock
certificate of deposit
savings account
4
1
At 22, you decide to begin putting money into an Individual Retirement Account (IRA). Which of the following BEST describes the benefits that ONLY a traditional IRA can give you?
You can earn substantial interest on your saved income.
You can defer paying taxes until you withdraw the money.
You can earn dividends directly from corporations.
You can receive interest payments directly from the government.
5
1
Nick wishes to place his money in a diversified investment with high potential returns. Which of the following should he select?
US Treasury Bonds
Stock
Mutual Fund
Certificate of Deposit
6
1
A low risk investment that involves loaning funds to the government for a specific time period for a specified return is a
mutual fund.
bond.
stock.
IRA.
Add to my formatives list

Formative uses cookies to allow us to better understand how the site is used. By continuing to use this site, you consent to the Terms of Service and Privacy Policy.