Family Investing
This quiz is for Personal Finance, Family Saving and Investment Unit. Students have already participated in class discussions and group assignments on investing and should be familiar with different types of investments and thier risks and potential benefits. The quiz should provide immediate assessment of student's current undersanding of family investment options and help provide assessment if student's are prepared for the investment section of the unit exam.
- 1.Investing is only important for families that have a lot of money to invest?
- A.
True
- B.
False
- 2.Investment should not be included in the family budget and only done after all other bills are paid?
- A.
True
- B.
False
- 3.Which of the following is not considered an investment?
- A.
Buying a certificate of deposit from a bank with a five year maturity.
- B.
Buying a new car that you intend to own for over five years.
- C.
Buying a mutual fund.
- D.
Buying a short term bond with a two year maturity.
- E.
All of the above are investments.
- 4.The __________ agency insures bank deposits and bank certificates of deposits up to certain individual dollar limits.
- 5.Consumers have many investment choices including buying INDIVIDUAL STOCKS and BOND FUNDS. Explain the typical potential benefits of each type of fund and the potential downsides of each type of fund?
- 6.Provide an analysis or classify what type of investors might best be suited for a stock mutual fund versus a bond fund? (or greater percentage of their portfolio in stock versus bond funds)
- 7.
- A.
Bond Funds
- B.
Money in a bank savings account
- C.
Certificates of deposits in banks
- D.
Land investments
- E.
Individual stocks
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