Help
Course Catalog > Stocks > 100
Stocks 102: Make Compound Interest Work for You

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!

Get a certificate for this quiz
Enter your name and email address below to receive certificate for this course. You will need this to confirm you have completed it.


Review your answers below to learn more.
1.
Reinvesting your dividends helps you compound your earnings because it _______.
Choose wisely. There is only one correct answer.
Builds your investment base. The larger your investment base, the more there is to compound.
2.
The _______ you invest your money, the _______ compounding can work for you.
Choose wisely. There is only one correct answer.
Earlier / More. Compounding expands your money greatly over time.
3.
Which of the following is used in the formula for determining compounded interest?
Choose wisely. There is only one correct answer.
All of the above. Principal, rate of return, and time periods are used in the compounding formula.
4.
The longer an investment is allowed to compound interest, the higher its return will be.
Choose wisely. There is only one correct answer.
True. Although time wont affect the actual rate of return, the return itself will grow, and it will grow much larger than it would from simple interest.
5.
Interest paid on savings accounts and bonds is generally taxable.
Choose wisely. There is only one correct answer.
True. Interest paid on savings accounts and bonds is generally taxable.