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Investing Basics: Chapter 1 quiz

If you think you've mastered the material in this chapter, take our quiz. After you click the "submit" button, the answers will appear below.

  1. Why do interest rates fluctuate?

    The Federal Reserve raises or lowers the rate at which banks borrow money from each other in order to control inflation or slow a recession.
    It's generally believed to be a conspiracy of mortgage brokers and global warming.
    Global influences align to swell or deflate interest rates.


  2. A general rule of thumb is that everyone should have enough cash on hand to see them through:

    His or her next paycheck.
    Three to six months of unemployment.
    His or her children�s college graduation.


  3. What kind of an account am I? I pay higher yields than most savings accounts, offer FDIC insurance, limit the number of monthly withdrawals you can make, but am considered liquid because I'm easy to access.

    Passbook savings account.
    Money market account.
    Certificate of deposit.


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