Types of Interest Rates & Investments

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Berto wants to invest in a company but he also wants some amount of control of the operations. Why would Berto choose stocks over bonds?

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1. Which of the following provides a loan to a company or government?

2. Which of the following is provided by a bank and pays a slightly higher interest rate if you agree not to touch the money for a set period of time?

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About This Quiz & Worksheet

Comprehending different investment options and interest rates can be difficult, so let's see what you understand about them with this quiz/worksheet combo. The quiz will ask you to provide information about many popular investment options.

Quiz & Worksheet Goals

In the assessment, you will be tested on your knowledge of these types of investments:

  • Providing a loan to the government
  • Buying ownership of a single company
  • Purchasing ownership in the most companies
  • Receiving a higher interest rate but having no access to your money

Skills Practiced

Take the quiz and review the worksheet to measure your ability to implement these skills:

  • Reading comprehension - ensure that you draw the most important information about types of interest rates and investments from the related lesson
  • Making connections - use your knowledge of investments to recognize how real interest is calculated
  • Distinguishing differences - compare and contrast topics from the lesson, such as buying ownership of a single company or in many companies

Additional Learning

Learn more by reviewing the accompanying lesson entitled Types of Interest Rates & Investments. Learning objectives included in the lesson are:

  • Define investment
  • Differentiate between Investments and savings for a macroeconomist
  • Understand the relationship between higher earnings and higher risk
  • Define inflation
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