POB 4.03 Review

Question 1 of 10

1

How much interest is earned on a balance of $2,500 that is compounded semiannually at a 6% interest rate for an account maintained for one year?

Select one of the following:

$152.25
$77.25
$150
$75.00

Explanation

Question 2 of 10

1

Grayson inherited money from his grandmother and would like to buy a second home on the beach, with hopes to sell it later at a profit. This type of investment is:

Select one of the following:

Real Estate
Collectibles
Corporate Bonds
Futures

Explanation

Question 3 of 10

1

Ramona, Tish's mother, has $10,000 to put into a savings plan. She doesn't plan to use the money for 5 years and wants the highest possible interest rate. What type of savings plan should Ramona put her money in?

Select one of the following:

Certificate of Deposit (CD)
Savings account
Money Market Account
Checking account

Explanation

Question 4 of 10

1

In 2007, there was a sharp decline in the market and prices fell over a period of time. This describes what type of market?

Select one of the following:

Bull
Bear
High yield
Low risk

Explanation

Question 5 of 10

1

Since Tish shops frequently, she likes having easy access to her money, which is being saved at a local bank. Which savings plan did she use?

Select one of the following:

Stock investment
Bond investment
Certificate of Deposit
Savings account

Explanation

Question 6 of 10

1

What is the balance at the end of a year of an account with a beginning balance of $1,500 that is compounded quarterly at a 12% interest rate?

Select one of the following:

$188.26
$1639.09
$1688.26
$1680

Explanation

Question 7 of 10

1

Christine buys and sells stocks and bonds at a set price for a commission for stockholders. What is her job?

Select one of the following:

Pawn shop owner
Bondsman
Bank teller
Stockbroker

Explanation

Question 8 of 10

1

Susie’s savings account is paying 4% simple interest annually. Susie has a principal amount of $1,000. How much interest will her account earn in 3 years?

Select one of the following:

$120
$1,120
$120.72
$60

Explanation

Question 9 of 10

1

The city government needs 1.2 million dollars to build a new medical facility. Which type of bond investment opportunity would help the city government obtain funding for the facility?

Select one of the following:

Corporate bond
Municipal bond
Treasury bills
Treasury notes

Explanation

Question 10 of 10

1

Jack is reviewing his investment portfolio to make sure it includes options that will allow him to access money immediately. Which type of evaluation factor of saving is he considering?

Select one of the following:

Liquidity
Potential return
Safety and risk
Taxes

	Created by Tara McDonald almost 8 years ago

High School Principles of Business Quiz on POB 4.03 Review, created by Tara McDonald on 10/02/2017.

POB 4.03 Review

Question 1 of 10

How much interest is earned on a balance of $2,500 that is compounded semiannually at a 6% interest rate for an account maintained for one year?

Select one of the following:

Explanation

Question 2 of 10

Grayson inherited money from his grandmother and would like to buy a second home on the beach, with hopes to sell it later at a profit. This type of investment is:

Select one of the following:

Explanation

Question 3 of 10

Ramona, Tish's mother, has $10,000 to put into a savings plan. She doesn't plan to use the money for 5 years and wants the highest possible interest rate. What type of savings plan should Ramona put her money in?

Select one of the following:

Explanation

Question 4 of 10

In 2007, there was a sharp decline in the market and prices fell over a period of time. This describes what type of market?

Select one of the following:

Explanation

Question 5 of 10

Since Tish shops frequently, she likes having easy access to her money, which is being saved at a local bank. Which savings plan did she use?

Select one of the following:

Explanation

Question 6 of 10

What is the balance at the end of a year of an account with a beginning balance of $1,500 that is compounded quarterly at a 12% interest rate?

Select one of the following:

Explanation

Question 7 of 10

Christine buys and sells stocks and bonds at a set price for a commission for stockholders. What is her job?

Select one of the following:

Explanation

Question 8 of 10

Susie’s savings account is paying 4% simple interest annually. Susie has a principal amount of $1,000. How much interest will her account earn in 3 years?

Select one of the following:

Explanation

Question 9 of 10

The city government needs 1.2 million dollars to build a new medical facility. Which type of bond investment opportunity would help the city government obtain funding for the facility?

Select one of the following:

Explanation

Question 10 of 10

Jack is reviewing his investment portfolio to make sure it includes options that will allow him to access money immediately. Which type of evaluation factor of saving is he considering?

Select one of the following:

Explanation