Career Prep B U4L8: Savings and Investing Unit Test

Prior to the CARES Act, up to what percentage of your income could be deducted as a donation to charity?

60%

What is the savings in a bank referred to as?

An interest bearing savings account

Which of these is considered a financial market?

New York Stock Exchange

If you used money from your emergency fund, which is an appropriate next response?

Reduce casual spending and increase savings until your emergency fund has been paid back.

Which of these is a mutual fund?

a fund that pools money from many investors to buy securities

Which of the following is not a characteristic of a typical bank savings account?

a high interest rate

Which option is an investment with compound interest?

a mutual fund following the S&P 500

Which of the following is identified as a 501(c)(3)?

a private foundation

Which is an employer-sponsored retirement plan?

a type of account offered to employees at very little or no cost

Which is a source of passive income?

owning dividend stocks

Which is an appropriate use of money in an emergency fund?

replacing the furnace in January

Which option defines a tax benefit?

some type of savings for taxpayers

Which of the following are considered to be capital gains?

the profit earned on the sale of an asset which has increased while it was owned

Which is the first step in setting a financial goal?

tracking your spending

If you have to pay your car insurance deductible, which is the best place to get the money?

your emergency fund