Title: QUIZ: Wealth Creation for All -- Financial Capability
Course: Kelly's Copy-Export Course > Section: Wealth Creation for All -- Financial Capability

Q: Interest describes
- the fee paid to a financial planner for investment advice.
- the fee paid to a real estate agent to demonstrate the buyer is serious.
- the fee paid by a borrower to a lender for the use of their money.
- the fee paid by a lender to a borrower for the use of their money.
A: the fee paid by a borrower to a lender for the use of their money.

Q: The initial amount deposited in a bank account, or the initial amount invested in stocks or bonds is called ___________.
- interest
- risk
- principal
- wealth
A: principal

Q: A stock is a
- contract that gives an investor the right to trade an asset before a certain date.
- share of ownership in a company.
- loan made to consumers.
- loan made by investors to a company or government.
A: share of ownership in a company.

Q: A bond is a
- contract that gives an investor the right to trade an asset before a certain date.
- share of ownership in a company.
- loan made to consumers.
- loan made by investors to a company or government.
A: loan made by investors to a company or government.

Q: The greater the risk of loss the higher the expected rate of return for an investment.
- True
- False
A: True

Q: A risk for an investor who buys a stock is that the
- price of the stock may go up.
- price of the stock may go down.
- company may expand across the country.
- company is unable to repay its loans.
A: price of the stock may go down.

Q: "Pay yourself first" is a reminder that you should
- spend whatever you want before saving part of your income.
- pay existing bills and then spend whatever you want.
- save a part of the income you earn before you start spending.
- decide how much you want to be paid and keep that amount of your income.
A: save a part of the income you earn before you start spending.

Q: Before investing in stocks and bonds you should
- open a bank account that pays compound interest and save enough to cover emergencies.
- open a bank account with a debit card so that you have easy access to your money.
- invest in higher risk financial instruments so you can learn first-hand how much markets fluctuate.
- open several credit card accounts so you have access to cash quickly in the event of losses from your investments in stocks and bonds.
A: open a bank account that pays compound interest and save enough to cover emergencies.