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Bus Essentials (Savings & Investing Review)
Bus Essentials (Savings & Investing Review)
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Review for Savings & Investing Test
Flashcards
15 cards
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Practice quiz
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Questions
15
Answers
1
A _____ bond is sold to finance regional projects such as schools and highways
Money Market
Municipal
Corporate
Secure
2
What is the primary reason to issue stock
To increase investor awareness of the company
To raise money to grow the company
To help investors earn a higher rate of return
To distribute the risk of bankruptcy across more investors
3
The Rule of 72 helps determine the interest rate on an investment
False
True
4
When you purchase a stock from a company, you become part-owner in that company
True
False
5
A ______ is a person who buys and sells stocks, bonds & other securities for clients
Bondbrocker
Investment Specialist
Government entity
Stockbrocker
6
Compound interest is interest earned on both principal and any interest earned on principal
False
True
7
A share of ownership in a corporation is referred to as a ____
Stock
Bond
Corporate bond
Corporate share
8
Diversification is important in investing because ___
It increases your overall risk
It ensures that you only make low-risk investments
It helps you balance your risk across different investments
It gaurantees you gain the highest rate of return
9
Ability to quickly turn an investment into cash is referred to as ...
dividend
liquidity
return of return
security
10
Which Savings vehicle has the highest liquidity
Savings Account
Investment Fund
Money Market Account
Certificate of Deposit
11
A ______ will often pay you dividends
Stock
CD
Savings account
Bond
12
If you purchase a __ you are investing in a variety of stocks or other investments.
Savings bond
Money market fund
Mutual fund
Stock
13
Money market deposit accounts are not insured by the FDIC.
False
True
14
Share of profits that are distributed to stockholders are called ___
Stock
Mutual Fund
Dividends
Security
15
When corporations or governments need to borrow large amounts of money, they often issue
IOUs
Coupons
bonds
stocks
