PLEASE HELP I DO NOT UNDERSTAND AT ALL!!!!!!!!!!!!!!!!


If your money market account earns 12% interest each year, about how long would it take for your account to double?
a.12 years

b.72 years

c.6 years

d.9 years

If your parents are interested in saving for retirement, which method would you recommend so that they could figure out exactly how long it takes to double their money?

a.Compound Interest Calculator

b.Rule of 72

c.Rule of 27

d.None of the above

Your brother decides to invest in the stock market in a company that is expected to pay dividends. Which option would you recommend if he wants to receive a dividend check from the company?

a.Cash dividends

b.Dividend refunds

c.Reinvested dividends

d.None of the above

4.
Which of the following would most likely produce the best rate of return on your investment?

a.Stock investment with a 7% average rate of return.

b.Savings account with a 3% interest rate

c.Mutual fund with a 5% average rate of return.

d.Checking account with 1.5% interest rate

5.
You want to invest in something that has a fixed interest rate. Which would you choose?

a.Stocks

b.Mutual funds

c.Bonds

d.None of the above

6.
You hear on the news that there is a market correction occurring in the stock market. What does this typically mean?

a.Stocks fall by 10%

b.The value of stocks increase by 10%

c.The market corrects itself by adding 10% to all stocks

d.None of the above