Savings and Investing
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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 moderate rate of return.
a high rate of return.
a low 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
Mutual Fund
Savings Account
Certificate of Deposit
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?
savings account
certificate of deposit
stock
US Treasury bond
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 earn dividends directly from corporations.
You can receive interest payments directly from the government.
You can defer paying taxes until you withdraw the money.
5
1
Nick wishes to place his money in a diversified investment with high potential returns. Which of the following should he select?
Stock
US Treasury Bonds
Certificate of Deposit
Mutual Fund
6
1
A low risk investment that involves loaning funds to the government for a specific time period for a specified return is a
bond.
IRA.
mutual fund.
stock.
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