Group 3 -Please answer regarding the question your financial knowledge.
11. Suppose you had $100 in a savings account and the interest rate was 2% per year. After 2 years, how much do you think you would have in the account if you left the money to grow?
More than $102 Exactly $102 Less than $102 I don't know |
12. Suppose you had $100 in a savings account and the interest rate is 10% per year and you never withdraw money or interest payments. After 10 years, how much would you have on this account in total?
More than $200 Exactly $200 Less than $200 I don't know |
13. Imagine that the interest rate on your savings account was 2% per year and inflation was 3% per year. After 1 year, how much would you be able to buy with the money in this account?
More than today Exactly the same Less than today I don't know |
14. Assume a friend inherits $100,000 today and his sibling inherits $100,000 5 years from now. Who is richer because of the inheritance?
A friend His sibling They are equally rich I don't know |
15. Suppose that in the year 2031, your income has doubled and the prices of all goods have doubled too. In 2031, how much will you be able to buy with your income?
More than today The same Less than I don't know |
16. Which of the following statements describes the main function of the stock market?
The stock market helps to predict stock earnings The stock market results in an increase in the price of stocks The stock market brings people who want to buy stocks together with those who want to sell stocks. I don't know |
17. Which of the following statements is correct regarding a mutual fund?
Once one invests in a mutual fund, one cannot withdraw the money in the first year Mutual funds can invest in several assets, for example invest in both stocks and bonds Mutual funds pay a guaranteed rate of return which depends on their past performance I don't know |
18. If somebody buys the stock of firm A in the market, he
Owns a part of firm A Has lent money to firm A Is liable for firm A's debts Don't know |
19. If somebody buys the bond of firm B in the market, he
| Owns a part of firm B Has lent money to firm B Is liable for firm B's debts Don't know |
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20. Considering a long time period (for example 20 or 30 years), which asset normally gives the highest return?
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21. Normally, which asset displays the highest fluctuations over time?
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22. When an investor spreads his money among different assets rather than only one asset, does the risk of losing money
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23. If you buy a 7-year bond, it means you cannot sell it after 5 years without incurring a major penalty.
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24. Stocks are normally safer than bonds.
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25. Buying a company stock usually provides a riskier return than a stock mutual fund.
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26. If the interest rate rise, the bond prices fall.
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