Economics Quiz "Saving & Investing"

which of the following is the most important factor in determining how much a consumer will spend?

• age

• size of income

• religion

• marital status

A key difference between saving and investing is

• Saving is for everyone, investing is for the wealthy

• Your money is insured when investing, it is not in savings

• Investing has a guaranteed return, savings does not

• Saving is for emergencies & goals, investing is for long-term wealth

When people save, they experience two benefits______

• Security & Interest

• Profits & Security

• Capital gains & Security

• Capital gain & Interest

A disadvantage of a money deposit account is ______

• Limited Withdrawals

• Variable interest rates

• Lower interest rates

• Greater Liquidity

A certificate of deposit is an example of a ________

• Guaranteed deposit

• Regular account

• Saving account

• Time deposit

Fixed expenses include such things as______

• Mortgage Payments

• Insurance premiums

• Rent

• All of the above

Using money to create new capital goods is called______

• Financial Investment

• Savings

• Real Investment

• Diversification

An advantage of a regular savings account is_____________

• Profit

• Wages

• Interest

• Dividends

Choosing a variety of investments is referred to as______

• Financial investment

• Capital accumulation

• Diversification

• Real Investment

A disadvantage of a certificate of deposit with a longer maturity is

• Higher interest rates

• Reduced Liquidity

• Less Security

• Financial Losses