What is “principal”? The amount you earn on an investment. The original money invested. The interest on interest earned. None of the above.
Quizzma Latest Questions
The compensation for investors who tolerate extra risk is called: A Cost of goods sold. B Rate of return. C Risk premium. D Opportunity costs
What answers apply to “mutual funds”? A. They might be smart investments for all young people. B. Mutual funds contain a combination of different types of stocks. C. Mutual funds are commonly found in retirement accounts. D. All of the above.
What ROI will you need to double your money in 6 years? 12%. 15%. 9%. 10%.
Certificates of deposit insured by the NCUA or FDIC are: A One of the safest and easiest investments. B High risk and high return. C Moderate risk. D Always identified by a paper certificate.
In finance, what is the “time horizon”? A. The length of time it takes to graduate from high school. B. The length of time it takes to order a pizza for delivery. C. The length of time that you plan on ...
Which one of these is an example of unnecessary debt? A. You buy a perfectly good used car instead of an expensive new car. B. You buy your groceries on Friday instead of coupon Monday. C. You charge clothes you don’t ...
You bring your lunch to your part-time job instead of spending $8 on lunch. You put the $8 in your savings account. This is an example of opportunity cost. True False
Which choice defines the value of the things you have to give up when making a decision? A. Opportunity cost. B. Patience. C. Economic cost. D. Marginal cost.
Generally, higher risk means you will have a lower rate of return on your investments. True False
Liquidity is the amount of cash you have plus any other assets that you can quickly convert into cash. True False
A good question to ask yourself when you are deciding if you should put money into savings or investments is “when will I need the money?” True False
You should look at your “time horizon” when deciding to put money into a savings account or an investment account. True False
What is the main risk you face when you buy stocks as investments? A. The value of your investment fluctuates with the profits and losses of the company and you have virtually no control over that fluctuation. B. You can only ...
One of the safest and easiest investments for young people is: A. Stocks and Bonds. B. Mutual funds. C. NCUA or FDIC Insured certificates of deposit. D. Bingo.
Which statements indicate smart steps for the first-time investor? A. Start making “opportunity cost” decisions now! Start giving up something nice now for something a lot better later. B. When you get your first credit card, do not use that credit ...
According to FoolProof, what is the main reason most people don’t invest on a regular basis? Choose the most correct answer. A. They don’t have an investment goal. That’s why goal-setting is such an important part of any savings or investing ...
What ROI will you need to double your money in 12 years? A. 7% B. 6% C. 5% D. 9%
Using the Rule of 72, how many years would it take to double your money if your ROI is 4%? A. 16 years. B. 22 years. C. 14 years. D. 18 years.
“Rate of Return,” “Return on Investment,” and ROI all mean the same thing. Which answer best describes these terms? A. ROI is the amount of money returned to you if you ask for it within the first year of investing it.
Which choice best reflects why some people consistently make bad investments? A. They didn’t do their homework on the investment and therefore didn’t understand the risk. B. They believed the person trying to sell them an investment rather than doing independent ...
Why do many experts recommend longer “time horizons” if you are making high-risk investments? Choose the most correct answer. A. If you have a longer time horizon you are capable of making more in interest in that time period. B. A ...
What is “compound interest”? A. Interest that is accumulated over a period of time but only occurs in a passbook savings account. B. When you earn interest on the interest you have already made. C. When you earn interest on only ...
If you are saving money to buy a house in eight years, your “time horizon” is: A. Eight years. B. Seven years. C. Seven and a half years. D. Ten years because of house expenses.
Which one of the following are examples of unnecessary debt? A. You buy an expensive new car rather than a perfectly good used car. B. You buy your groceries on Friday instead of coupon Monday. C. You charge clothes you don’t ...
Q: Which of these are examples of opportunity cost? A. You skip buying new jeans and put the money in your college fund. B. You deposit your entire paycheck in your investment account instead of cashing it and taking your buddies ...
Q: Which answer best defines “opportunity cost”? A. What it costs to take advantage of a great savings opportunity.B. The value of the things you have to give up to get something else.C. The amount you have to pay ...