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Saving & Investing Flashcards | StudBud
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Saving & Investing
Saving & Investing
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Answers
1
There is a 97% chance of profit if you leave you $ in the stock market for a _____ year period.
10
20
5
2
2
The limit on annual contributions to an (IRA) is:
$500
$555,000
$5,500
$55,000
3
means how quickly you can get your hands on your cash
diversity
liquidity
elasticity
ponzi
4
"Pay Yourself First" refers to what "bill"?
401k
saving
mortgage
rent
5
payment people receive when they lend money or allow someone else to use their money
bond
interest
principal
dividend
6
The _____ the risk, the _____ the potential return.
lower, higher
higher, higher
higher, lower
7
Avoiding putting all of your eggs in one basket is referred to as:
mutualization
reconciliation
budgeting
diversification
8
lures $ from victims and then pays those victims a premium from $ that is paid by new investors
Money Market Account
Ponzi Scheme
Embezzlement
Mutual Fund
9
In order for an investment to double in 9 years it must grow in interest at this rate:
2%
7%
8%
9%
10
123456789 is the:
routing number
account number
check number
11
Place the following investment options in order from LEAST to MOST risky.
mutual fund-stock-bond
bond-mutual fund-stock
bond-stock-mutual fund
stock-bond-mutual fund
12
Diversify your investments to increase risk.
false
true
13
increase in value of an asset
inflation
deflation
interest
capital gains
14
Investing savings in several different types of accounts
is a ponzi scheme.
increases the risk.
is a risk-free investment.
lowers the overall risk.
15
ROI stands for:
return on investment
reward on investment
reward of interest
risk on investment
16
Savings is _____ term and investing is _____ term.
long, short
short, long
short, short
long, long
17
The sooner you begin saving, the greater the power of _____ interest over time
compound
complex
diversified
simple
18
Which of the following investments has the greatest risk?
mutual funds
savings bonds
blue chip stocks
penny stocks
19
Dave Ramsey's Baby Step #1 is to save __________ to start an Emergency Fund.
$1,000
$10,000
$100
$100,000
20
Has a higher rate of return than an average checking accounts (higher required balance too)
savings account
money market account
mutual fund
21
1035 is the:
routing number
check number
account number
22
The rule of _____ helps you when wanting to double your investment.
10-20-70
27
70-20-10
72
23
Dave Ramsey's Baby Step 3 is to save _____ months of expenses in savings.
9-12
1-3
3-6
6-9
24
company that pools the money of many individuals to buy investments
mutual fund
stockholder
stockbroker
financial advisor
25
The portion of current income not spent on consumption is known as:
savings
investing
certificate of deposit
compound interest
26
This type of investment must ‘mature’ to be redeemed for full face value.
stocks
mutual funds
money market accounts
bonds
27
What percent of Dave Ramsey's investments are in individual stocks?
0%
50%
25%
100%
28
An investment earning 2% will take _____ years to double.
7
72
36
2
29
The spending-saving-investing rule is:
10-20-70
70-20-10
70-10-20
20-70-10
30
A savings plans that require savers to leave their money on deposit for certain periods of time
mutual funds
CD
time deposits
money market account
31
It took the stock market _____ days to recover to original levels after 9/11.
59
9
5
590
32
A person who buys a stock for $40 and sells it for $50 has earned $10 in
profit per share.
simple interest.
compound interest.
dividends.
33
987654321 is the:
routing number
account number
check number
34
Dave Ramsey has _____ Baby Steps to financial freedom.
9
3
7
5
35
If retirement is way off-riskier accounts may pay off more because of the benefit of time.
false
true
36
Another name for a bill is a(n):
fee
withdrawal
ledger
invoice
37
In this retirement plan the employer will match the contribution of the employee (with limits)
Roth IRA
403b
Traditional IRA
401k
38
When it comes to credit card bills, you must ALWAYS pay at least:
interest
the minimum monthly payment
full balance
half of the balance
39
Interest earned on a Roth IRA is:
taxable upon retirement.
tax deferred.
taxable up to $5,000 a year.
tax free.
40
NSF stands for
Non Satisfactory Funds
Non Savings Funds
Non Sufficient Funds
Non Sale Funds
