Saving & Investing MCQs

  1. What is an emergency fund?
  2. A certificate of deposit for long-term savings
    A savings account for retirement
    A savings account for unexpected expenses
  3. Which of the following is a benefit of investing in the stock market?
  4. High returns with no risk
    Potential for long-term growth
    Guaranteed returns on investment
  5. Which of the following is an example of a low-risk investment?
  6. Savings accounts
    Real estate
  7. What is the rule of 72 used for?
  8. Calculating the amount of taxes owed on investment gains
    Determining the interest rate on a mortgage loan
    Estimating the time it takes for an investment to double in value
  9. Which of the following is an example of a high-yield savings account?
  10. Online savings account
    Money market account
    Certificate of deposit
  11. What is a dividend?
  12. A loan from a bank
    A share of profits paid to investors
    The amount owed on a credit card statement
  13. What is a mutual fund?
  14. An investment that pools money from multiple investors to purchase a variety of assets
    A savings account with a high interest rate
    A retirement savings account
  15. What is dollar-cost averaging?
  16. Buying stocks only when their price is at a low point
    Selling stocks only when their price is at a high point
    Investing a fixed amount of money in a particular asset over time
  17. What is a 401(k) plan?
  18. A type of insurance policy that provides retirement income
    An investment account for high-net-worth individuals
    A tax-advantaged retirement savings plan offered by employers
  19. What is asset allocation?
  20. The process of determining the best stocks to invest in
    The process of dividing investments among different asset classes
    The process of buying and selling stocks at the right time
  21. What is the difference between a stock and a bond?
  22. A stock represents ownership in a company, while a bond represents a loan to a company
    A stock represents a loan to a company, while a bond represents ownership in a company
    A stock and a bond are the same thing
  23. What is a stock market index?
  24. A measure of the overall performance of a particular stock market or segment of the market
    A type of investment that pays interest on a regular basis
    A list of all the companies listed on a particular stock exchange
  25. What is a limit order?
  26. An order to buy or sell a security immediately at the current market price
    An order to sell a security if it falls below a certain price
    An order to buy or sell a security at a specific price or better
  27. What is diversification?
  28. The process of investing only in one type of asset to maximize returns
    The process of investing in multiple types of assets to reduce risk
    The process of investing in assets with high returns and low risk
  29. What is a 529 plan?
  30. A type of life insurance policy
    An investment account for retirement savings
    A tax-advantaged savings plan for college education expenses