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Chapter 6 Review

Quiz by Ben

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18 questions
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  • Q1
    What is the continuing rise in the general level of price?
    Inflation
    Deflation
    Rate of Return
    Liquidity
    120s
  • Q2
    This type of savings account is said to have high liquidity; however, will not earn as much interest as the other accounts?
    Money Market Account
    Regular Savings Account
    Savings Bonds
    Certificate of Deposit (CD)
    120s
  • Q3
    What is the profit that you earn when investing in stocks?
    Liquidity
    Return
    Principal
    Interest
    120s
  • Q4
    The money that you earn on a CD is referred to as?
    Interest
    Return
    Principal
    Rate of Return
    120s
  • Q5
    The amount of money that one earns interest on is referred to as?
    Initial Deposit
    Principal
    Savings
    Liquidity
    120s
  • Q6
    This type of savings account earns a specific amount of interest over a fixed amount of time. Requires you to leave money in for the entire time--say 6 months or a year.
    Savings Bonds
    Regular Savings Account
    Certificate of Deposit (CD)
    Money Market Account
    120s
  • Q7
    What is the amount of interest earned in one year, expressed as a percentage?
    Liquidity
    Rate of Return
    Interest
    Inflation Rate
    120s
  • Q8
    The ability of an asset to be quickly and easily converted into cash is?
    Inflation
    Interest
    Return Rate
    Liquidity
    120s
  • Q9
    What is the reduction on the general level of price in an economy?
    Rate or Return
    Interest
    Inflation
    Deflation
    120s
  • Q10
    This type of savings account invests your money in securities--such as Treasury bills, savings bonds, and CDs--that can be bought and sold in the investment markets.
    Savings Bonds
    Certificate of Deposit (CDs)
    Regular Savings Account
    Money Market Account
    120s
  • Q11
    Documents indicating ownership-such as stock certificates, bonds, or Treasury bills-that can be bought and sold in the investment markets
    Savings Bonds
    Deposit Slips
    Verification Documents
    Securities
    120s
  • Q12
    It is better to completely stop a savings plan if your income or other circumstances change.
    True
    False
    120s
  • Q13
    Which of the following is not a recommended way to reach your savings goals?
    withdrawing only small amounts occasionally
    setting aside small amounts over time
    setting realistic, achievable goals
    adjusting your savings amounts if necessary
    120s
  • Q14
    What things should you use to determine how much money should be in your emergency fund?
    Your savings plan and children's college plan
    Your income, lifestyle, and values.
    The amount of discretionary income you spend each month
    Short, Medium, and Long-term goals
    120s
  • Q15
    If you lose your job, what is one way you can reduce your expenses?
    charging your discretionary purchases
    cutting back on discretionary purchases
    cutting back on necessities
    charging some of your necessities
    120s

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