Fundamentals of Investment and Economics

Savings Account Insurance

• Every savings account is insured for $250,000

Investment Options

• Stock: Represents ownership in a corporation
• Bond: A debt instrument representing a loan made by an investor to a borrower (corporation or government).

Riskiest and Safest Investments

• Stock is the riskiest investment
• Savings account is the safest investment.

Diminishing Marginal Utility

• The first few pieces of pizza are very tasty, but additional slices reduce enjoyment.
• This is an example of diminishing marginal utility.

Substitute Goods

• When the price of chicken increases, consumers switch to ground beef.
• Ground beef is a substitute good for chicken.

Business Organization

• Sole Proprietorship is the most common business organization.
• Corporation is the most profitable business organization, on average.

Explore the core concepts of savings account insurance, investment options, and the principles of diminishing marginal utility. This quiz delves into substitute goods and various business organizations, providing essential knowledge for financial literacy.