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BF21 Unit 2 Practice Test

Authored by Millard Davis

Financial Education

9th - 12th Grade

Used 7+ times

BF21 Unit 2 Practice Test
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43 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 3 pts

Which is a disadvantage of investing in a savings account?

The account's potential for loss is high.

The rate of return fails to keep up with inflation.

One must pay a penalty for withdrawing money early.

A minimum balance is required to keep the account active.

2.

MULTIPLE CHOICE QUESTION

30 sec • 3 pts

A service that a bank provides to a company for the receipt of customers'

payments, which are directed to a special post office box instead of

directly to the company, is referred to as a/an:

lockbox.

vendor lease.

private placement.

asset management.

3.

MULTIPLE CHOICE QUESTION

30 sec • 3 pts

A marketplace where trading of securities such as equities, bonds,

currencies, and derivatives occurs is referred to as a:

call market.

bear market.

financial market.

foreign exchange market.

4.

MULTIPLE CHOICE QUESTION

30 sec • 3 pts

A type of market in which each transaction takes place at predetermined

time intervals is referred to as a:

call market.

bond market.

financial market.

continuous market.

5.

MULTIPLE CHOICE QUESTION

30 sec • 3 pts

Ownership investments are ideal for investors who are:

risk-averse.

risk-tolerant.

close to retirement.

just beginning to invest.

6.

MULTIPLE CHOICE QUESTION

30 sec • 3 pts

Which is a factor that determines how much investment risk a person can

handle?

goals

income

social status

banking institution

7.

MULTIPLE CHOICE QUESTION

30 sec • 3 pts

The term that refers to how easily an asset can be converted to cash is

known as:

commodity.

currency.

Eurobond.

liquidity.

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