AnswersSNHS NV-Civics and EconomicsPrinciples of Investment

Principles of Investment — Unit test Answers

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21
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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.

A
Is advertising influencing her?
B
What are her motivations?
C
Has she compared prices?
D
Is she buying at the right time?
E
Will her sister like the jacket too?
22
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What is one way employers get employees to participate in a 401k?

A
by requiring them to participate unless they opt out
B
by requiring them to opt in if they want to participate
C
by giving them an annual pay raise
D
by giving them a signing bonus when they participate
23

The image shows a sales receipt.

Question illustration
A
6.25 percent
B
8.5 percent
C
10 percent
D
10.85 percent
24

Which describes a type of tax that people pay on money they earn?

A
flat tax
B
income tax
C
purchase tax
D
progressive tax
25

One advantage to buying a CD is that it

A
can be purchased for different amounts.
B
is high risk but comes with great rewards.
C
can be used for long-term retirement.
D
is high risk but backed by the government.
26

Interest on an investment is considered

A
financing.
B
a fee.
C
a penalty.
D
profit
27

Most investors approach risky investments by

A
investing the same way that they do with safer investments.
B
investing more money in the stock of unknown companies.
C
investing less money in low- and medium-risk investments.
D
investing less money in high-risk investments.
28

Read the sample advertisement.Lose body fat and feel healthier with our proven supplement, Edgozene! Losing weight is easy with Edgozene! Just take two pills before each meal. You’ll start to feel full and won’t eat as much. No other diet pill offers what our product does and, if you buy now, you can get two bottles of Edgozene for just $29.95!

A
for a limited time
B
two bottles for $29.95
C
our proven supplement
D
no other diet pill offers
29

Which are considered types of credit available to borrowers? Check all that apply.

A
personal loans
B
bonds
C
credit cards
D
mortgages
E
cash
F
auto loans
G
gift cards
30

Which is a kind of federal payroll tax?

A
medicare tax
B
sales tax
C
property tax
D
progressive tax
31

Who is following the law when it comes to protecting investors’ funds?

A
a financial planner who pitches a risk-free stock
B
a mutual fund advisor who informs investors about risks
C
a broker who sells CDs from nonfinancial institutions
D
a realtor who advertises a can’t-miss land buy
32

Read the scenario.Yuri has $100 to spend at the store. He spots a pair of designer jeans with a $98 price tag on them but knows that he can buy three pairs of $30 jeans for about the same price. He still decides to buy the $98 pair.

A
emotional spending
B
confused sense of needs and wants
C
greedy spending
D
conspicuous consumption

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