
Chapter 6 Review
Quiz by Ben
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18 questions
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- Q1What is the continuing rise in the general level of price?InflationDeflationRate of ReturnLiquidity120s
- Q2This type of savings account is said to have high liquidity; however, will not earn as much interest as the other accounts?Money Market AccountRegular Savings AccountSavings BondsCertificate of Deposit (CD)120s
- Q3What is the profit that you earn when investing in stocks?LiquidityReturnPrincipalInterest120s
- Q4The money that you earn on a CD is referred to as?InterestReturnPrincipalRate of Return120s
- Q5The amount of money that one earns interest on is referred to as?Initial DepositPrincipalSavingsLiquidity120s
- Q6This 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 BondsRegular Savings AccountCertificate of Deposit (CD)Money Market Account120s
- Q7What is the amount of interest earned in one year, expressed as a percentage?LiquidityRate of ReturnInterestInflation Rate120s
- Q8The ability of an asset to be quickly and easily converted into cash is?InflationInterestReturn RateLiquidity120s
- Q9What is the reduction on the general level of price in an economy?Rate or ReturnInterestInflationDeflation120s
- Q10This 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 BondsCertificate of Deposit (CDs)Regular Savings AccountMoney Market Account120s
- Q11Documents indicating ownership-such as stock certificates, bonds, or Treasury bills-that can be bought and sold in the investment marketsSavings BondsDeposit SlipsVerification DocumentsSecurities120s
- Q12It is better to completely stop a savings plan if your income or other circumstances change.TrueFalse120s
- Q13Which of the following is not a recommended way to reach your savings goals?withdrawing only small amounts occasionallysetting aside small amounts over timesetting realistic, achievable goalsadjusting your savings amounts if necessary120s
- Q14What things should you use to determine how much money should be in your emergency fund?Your savings plan and children's college planYour income, lifestyle, and values.The amount of discretionary income you spend each monthShort, Medium, and Long-term goals120s
- Q15If you lose your job, what is one way you can reduce your expenses?charging your discretionary purchasescutting back on discretionary purchasescutting back on necessitiescharging some of your necessities120s