AnswersHSA 26-27 Principles of BusinessMarketing and Finance AStudy Guide and Quiz

Study Guide and Quiz Answers

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1
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If you plan to take money out of the bank frequently, what type of account should you get?

A
A savings account
B
A checking account
C
An interest account
D
An investment account
2
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What does an exchange rate tell you?

A
How many products have been exchanged between two different countries
B
The number of people in one country in comparison to another country
C
How much one unit of currency is worth when converted to another currency
D
The speed that people are buying a specific type of product
3

If you want to take advantage of compound interest, what should you do when an investment produces interest?

A
Use the interest to pay your bills.
B
Reinvest the interest.
C
Put the interest in a savings account.
D
Put the interest in a checking account.
4

A __________ is when you take money out of the bank.

A
Deposit
B
Transfer
C
Branch
D
Withdrawal
5

What is the best way to deal with volatility and get the best return on your investment?

A
Invest only in very safe investments.
B
Put your money in a savings account.
C
Avoid investments that create capital gains.
D
Use diversification.
6

As a unit of measure, money makes it easier for consumers to do what?

A
Compare prices of different products.
B
Make a bigger profit from their income.
C
Have a better exchange rate with other currencies.
D
Get more unearned income.
7

What is a minimum balance?

A
The process of balancing your checkbook register against your bank statement
B
The largest number of checks you can write in a month
C
The smallest withdrawal you can make from a bank account
D
The smallest amount of money you can keep in a bank account
8

If your bank is a member of the FDIC, what does that mean for you?

A
The bank is not allowed to lend out your money.
B
You will get a better exchange rate than at other banks.
C
Your bank is allowed to print out currency for you.
D
Your money is protected by insurance up to a specific amount.
9

If you want to compare two different investments, what should you calculate?

A
The compound interest
B
The ROI percentages
C
The ROI dollar amounts
D
The capital gain
10

Why can a bank afford to pay an interest rate on a savings account?

A
Because the bank is insured by the FDIC
B
Because the Fed prints more currency when needed
C
Because the bank puts the money into equity investments
D
Because the bank lends that money out at a higher interest rate

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Study Guide and Quiz Answers — HSA 26-27…