Saving and Investing

Multiple Choice

This account allows you to deposit money at a bank for safekeeping.

• Saving Account

• Checking Account

• Bill Account

• Casino Account

Multiple Choice

This is the cost of using some other person's or bank's money.

• Interest

• Bill

• Principal

• Credit

Multiple Choice

This account allows you to withdraw money, pay a bill, or make purchases easily.

• Checking Account

• Savings Account

• Market Money Account

• CD Account

Multiple Choice

The action enters money into an account.

• Deposit

• Withdrawal

• Loan

• Deduction

Multiple Choice

True or false: Depositing money in a bank is low risk.

• True

• False

Multiple Choice

When you deposit money in the bank, you will quickly earn a lot of interest!

• True

• False

Multiple Choice

True or false: Investing in stocks can be high risk.

• True

• False

Multiple Choice

When it comes to the stock market, the goal is to . . .

• Buy low and sell high

• Buy high and sell low

Multiple Choice

When you invest in stocks, mutual funds or bonds, your money is insured.

• True

• False

Multiple Choice

What best describes a stock?

• A stock means you own a piece of a company.

• A stock is how you count profits.

Multiple Choice

Is a money market account insured by the government?

• I think so

• No

• Yes

• I was not paying any attention.

Multiple Choice

Which of the following is an example of a defined benefit retirement plan?

• 401k

• IRA

• Pension

Multiple Choice

Which of the following is an example of a defined contribution benefit plan?

• 401k

• IRA

• Pension

Multiple Choice

Tax-deferred means...

• You do not have to pay income tax on the money until you begin to withdraw it at retirement

• You pay income tax on the retirement contributions when you deposit them

Multiple Choice

What is considered to be "retirement" age, when it is acceptable to begin taking IRA distributions without penalty?

• 50

• 59 1/2

• 65

• 70 1/2

Multiple Choice

Which type of IRA has contributions that are tax-deferred?

• Traditional

• Roth

Multiple Choice

What type of employers usually offer pension plans for employees?

• Government agencies

• fast food restaurants

• small start ups

• private schools

Multiple Choice

What is the difference between a Traditional and Roth IRA?

• A traditional IRA's contributions are not taxed until you withdraw them at retirement. A Roth IRA's your contributions are taxed when you invest.

• A Roth IRA's contributions are not taxed until you withdraw them at retirement. A Traditional IRA your contributions are taxed when you invest them in.