True Or False: Trivia Questions On Savings And Investment! Quiz

16 Questions | Attempts: 1291

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True Or False: Trivia Questions On Savings And Investment! Quiz - Quiz

Below are some true or false Trivia Questions On Savings And Investment. When people get money, making more money through what they save up is all they can think about, and this is made possible by them making proper investments. Take the test and see if you know all there is about investments and how to get the best returns.


Questions and Answers
  • 1. 
    Consumption equals disposable income plus savings.
    • A. 

      True

    • B. 

      False

  • 2. 
    The most significant determinant of the level of consumer spending is disposable income.
    • A. 

      True

    • B. 

      False

  • 3. 
    Historical data suggest that the level of consumption expenditures is directly related to the level of disposable income.
    • A. 

      True

    • B. 

      False

  • 4. 
    Consumptions rises and savings falls when disposable income increases.
    • A. 

      True

    • B. 

      False

  • 5. 
    Empirical data suggest that households tend to spend a similar proportion of a small disposable income than of a larger disposable income.
    • A. 

      True

    • B. 

      False

  • 6. 
    The break-even income is the income level at which business begins to make a profit.
    • A. 

      True

    • B. 

      False

  • 7. 
    The average propensity to save is equal to the level of saving divided by the the level of consumption.
    • A. 

      True

    • B. 

      False

  • 8. 
    An increase in wealth will increase the consumption schedule (shift it upward).
    • A. 

      True

    • B. 

      False

  • 9. 
    An increase in the taxes paid by consumers will decrease both the amount they spend for consumption and the amount they save.
    • A. 

      True

    • B. 

      False

  • 10. 
    Both the consumption schedule and the saving schedule tend to be stable over time.
    • A. 

      True

    • B. 

      False

  • 11. 
    The real interest rate is the nominal interest rate minus the rate of inflation.
    • A. 

      True

    • B. 

      False

  • 12. 
    A business will purchase additional capital goods if the real interest rate it must pay exceeds the expected rate of return from the investment.
    • A. 

      True

    • B. 

      False

  • 13. 
    The relationship between the rate of interest and the level of investment spending is called the investment schedule.
    • A. 

      True

    • B. 

      False

  • 14. 
    The irregularity of innovations and the variability of business of profits contribute to the instability of investment spending.
    • A. 

      True

    • B. 

      False

  • 15. 
    Saving and actual investment are always equal.
    • A. 

      True

    • B. 

      False

  • 16. 
    Saving at any level of real GDP equals planned investment plus unplanned changes in inventories.
    • A. 

      True

    • B. 

      False

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