What is a key difference between saving and investing?

Unit 6 Test Investing

Quiz
•
Other
•
8th Grade
•
Medium
Rocco Costanza
Used 89+ times
FREE Resource
15 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
15 mins • 1 pt
Saving is for long-term goals; investing is for short-term goals
Saving earns a much higher rate of return than investing your money
Saving guarantees you the money you put away while investing has no guarantees.
Saving earns compound interest while investing earns simple interest
2.
MULTIPLE CHOICE QUESTION
15 mins • 1 pt
Select the best definition of compound interest.
Compound interest is earning interest on the original amount you deposited.
Compound interest is earning interest on the original amount you deposited plus any interest earned.
Compound interest is the amount of interest you are charged on your bank account each month.
Compound interest is earning a fixed dollar amount on your bank account each month.
3.
MULTIPLE CHOICE QUESTION
15 mins • 1 pt
What is a stock?
A stock is a share of ownership in a company.
A stock is a lending investment to the government or a company.
A stock is an insured bank account with high risk.
A stock is a type of investment that uses money from investors to purchase many different investment types.
4.
MULTIPLE CHOICE QUESTION
15 mins • 1 pt
What type of market is described by a receding economy and a decline in the stock market?
Bear Market
Bull Market
Pig Market
Sheep Market
5.
MULTIPLE CHOICE QUESTION
15 mins • 1 pt
Duncan plans to invest all of his money in individual stocks. Why is this likely a bad investment strategy?
He will need a large amount of money to invest in individual stocks.
Purchasing individual stocks has a very low amount of risk and a low return.
He will need to open multiple brokerage accounts for each stock he purchases.
Purchasing individual stocks has a high amount of risk and little diversification.
6.
MULTIPLE CHOICE QUESTION
15 mins • 1 pt
Which statement best describes the risk level of bonds?
Bonds are one of the riskiest investment types, but have the potential for a high return.
Bonds have a moderate amount of risk, but are a riskier investment when compared to stocks.
Bonds have a low to moderate amount of risk and are less risky than stocks.
Bonds have no risk.
7.
MULTIPLE CHOICE QUESTION
15 mins • 1 pt
What is one way you can earn money by investing in bonds?
Through interest collected on your original investment.
Through dividends.
By selling your shares in the bond.
By purchasing a diversified bond type.
Create a free account and access millions of resources
Similar Resources on Wayground
19 questions
Stock Market Vocabulary

Quiz
•
6th - 8th Grade
12 questions
7.3 Bonds, Diversification, and Asset Allocation

Quiz
•
7th - 8th Grade
15 questions
JA section 2

Quiz
•
6th - 8th Grade
10 questions
Financial Literacy Comprehension Quiz

Quiz
•
7th Grade - Professio...
10 questions
Insurance, Investing and Identity Theft Protection

Quiz
•
6th - 8th Grade
10 questions
Saving and Investing

Quiz
•
8th Grade
19 questions
Investing

Quiz
•
8th Grade
15 questions
Savings and investing preassessment October 2021

Quiz
•
7th - 8th Grade
Popular Resources on Wayground
25 questions
Equations of Circles

Quiz
•
10th - 11th Grade
30 questions
Week 5 Memory Builder 1 (Multiplication and Division Facts)

Quiz
•
9th Grade
33 questions
Unit 3 Summative - Summer School: Immune System

Quiz
•
10th Grade
10 questions
Writing and Identifying Ratios Practice

Quiz
•
5th - 6th Grade
36 questions
Prime and Composite Numbers

Quiz
•
5th Grade
14 questions
Exterior and Interior angles of Polygons

Quiz
•
8th Grade
37 questions
Camp Re-cap Week 1 (no regression)

Quiz
•
9th - 12th Grade
46 questions
Biology Semester 1 Review

Quiz
•
10th Grade