Investing — Unit test Answers

Which best describes why governments collect taxes?

Interest on an investment is considered

Read the following excerpt from Levitt and Dubner’s Freakonomics. The bagel data also reflect how much personal mood seems to affect honesty. Weather, for instance, is a major factor. Unseasonably pleasant weather inspires people to pay at a higher rate. Unseasonably cold weather, meanwhile, makes people cheat prolifically; so do heavy rain and wind. Worst are the holidays. The week of Christmas produces a 2 percent drop in payment rates—again, a 15 percent increase in theft, an effect on the same magnitude, in reverse, as that of 9/11. Thanksgiving is nearly as bad; the week of Valentine’s Day is also lousy, as is the week straddling April 15. There are, however, a few good holidays: the weeks that include the Fourth of July, Labor Day, and Columbus Day. The difference in the two sets of holidays? The low-cheating holidays represent little more than an extra day off from work. The high-cheating holidays are fraught with miscellaneous anxieties and the high expectations of loved ones.Which of the following best summarizes the main idea of this paragraph?

Which two factors have the greatest influence on risk for an investment?

When the economy grows, the market grows, most likely because

Most investors approach risky investments by

Why were savings and loans (S&Ls) originally established?

Look at the table below showing an example of a checkbook ledger.

Emily is deciding whether to buy the same designer jacket her friends have. The jacket is much more expensive than a similar one from a lesser-known brand.Which questions should she consider before she buys the jacket? Check all that apply.

Emma has decided that she needs to assess the risk and return of buying an extended warranty for her new laptop for school. Which of these practical questions should she ask herself to assess the risk? Select three options.

Which describes the difference between a personal loan and a credit card?

Which is an example of a short-term investment?

Credit unions differ from retail banks because they are

Which best describes a regressive tax?

Through the successful study of personal finance, an individual will be