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Chapter 19 Investing Flashcards | StudBud
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Chapter 19 Investing
Chapter 19 Investing
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Study Guide for Intro to Business 2 Chapter 19 Test over Savings and Investments.
Flashcards
27 cards
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Questions
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Answers
1
Which is NOT a characteristic of a preferred stock.
Dividends are limited at a set rate.
More risky than common stock
takes priority over common stock with dividends.
no voting rights within the corporation
2
A loan giving the lender a claim against the property if the principal or interest are not paid
Installment Loan
Savings Account
Rental Agreement
Mortgage
3
What is a characteristic of a savings account?
Low or zero minimum balance
Risky
No interest earned
high interest earned
4
How often is interest paid on a bond?
every day
usually twice a year
after 5 years
every week
5
Common stocks have a set dividend rate?
False
True
6
The storage of money for future use.
Savings
Investment
Stock Investment
Real Esate
7
Which is NOT a characteristic of a mutual fund?
There is a high fee for joining
The company buys and sells a wide variety of stocks/bonds
An investment fund set up and managed by a company
Receives money from many investors
8
Lending money for use by businesses and government.
Bond Investments
Stock Investments
Savings Account
Installment Loan
9
Which one is NOT an alternative investment?
Commodities
Savings Account
Real Estate
Collectibles
10
Which is NOT a characteristic of common stocks.
dividends are paid after preferred stockholders
right to share in its profits
general ownership in a corporation
no voting rights
11
Preferred stocks have voting rights?
True
False
12
Which is the safest investment?
Real Estate
Collectibles
US Savings Bonds
Stock Market
13
The price at which a share of stock can be bought and sold in the stock market.
market value
stock value
face value
cash value
14
What does CD stand for?
Corporate Deposit
Cannot Do
Certificate of Deposit
Condominium Declaration
15
High risk _____.
has the potential for a higher return
should not be considered when making an investment
has a potential for lower returns
16
What is a characteristic of a CD?
Must be for a specified period of time
No penalties if withdrawn money early
Lower interest rate than a savings account
Requires no minimum deposit
17
What is a characteristic of a money market account?
higher interest rate than a CD
minimum balance requirement
lower interest rate than a savings account
a fixed interest rate
18
Money you receive for letting others use your money.
Risk
Liquidity
Interest
Taxes
19
Using your savings to earn more money.
Investing
Saving
Interest
Renting
20
Which is NOT an advantage of renting?
free from the work and expense of property maintenance
easier to move
you build an investment
socialization with others
21
A licensed specialist in the buying and selling of stocks and bonds.
Real Estate Agent
Tax Attorney
Stockbroker
Stockholder
22
Which investment earns the highest interest rate?
Savings Account
Money Market Account
Checking Account
Certificate of Deposit
23
The ease with which an investment can be changed to cash.
Interest
Liquidity
Risk
Compound Interest
24
Individually owned housing unit in an apartment-like complex.
Condominium
Townhouse
Apartment
Lake House
25
Earning interest on previously earned interest.
accelerating interest
liquidity
investing
compound interest
26
Which is NOT an economic factor that can cause stock prices to go up and down?
employment
inflation
interest rates
your career
27
How long is a mortgage usually?
100 years
15-30 years
5 years
50 years
