Savings/Investing Review

Savings accounts are known for being safe.

• True

• False

Investment accounts often times have low interest rates of return.

• False

• True

A bank pays you a specific interest rate over a predetermined amount of time before you can collect your investment.

• Stock

• Bond

• Mutual Fund

• Certificate of Deposit

Professionally managed portfolio that contains stocks, bonds and other investments.

• Bonds

• Stocks

• Mutual Fund

• Certificate of Deposit

Owning a share in a particular publicly traded company.

• Mutual Fund

• Stock

• Bond

• Certificate of Deposit

Lending money to a business or government with a promise to be paid back.

• Certificate of Deposit

• Stocks

• Bonds

• Mutual Funds

Traditional 401(k)s tax your money when you take it out of your account in retirement.

• True

• False

ROTH 401(k)s tax your money when you take the money out during retirement.

• True

• False

Rule of 72

You invest $5000 at 7% interest. How many years before it doubles?

• 10.2

• 10.3

• 10.4

• 10.1

Rule of 72

You start with $16,000 at 4.8% interest. How many years before it doubles?

• 15

• 16

• 14