B285 Savings and Investing

Question 1

This is when investors pool their money together to buy stocks, bonds and other investments.

Accepted Answer

mutual fund

Question 2

Non-profit savings institution for members with a common bond.

Accepted Answer

credit union

Question 3

This stock has voting rights and no fixed dividends.

Accepted Answer

common stock

Question 4

Supply and demand for a stock sets the

Accepted Answer

market price.

Question 5

This retirement option is pre-taxed wages and may have an employer match program.

Accepted Answer

401K

Question 6

Which of the following is the most liquid investment?

Accepted Answer

savings account

Question 7

This stock has fixed dividends and no voting rights.

Accepted Answer

preferred stock

Question 8

Interest paid only on the principal of a savings option is known as

Accepted Answer

simple.

Question 9

Spreading your investments out to different industries to reduce risk is known as

Accepted Answer

diversification.

Question 10

This retirement option is for lengthy employment and an average of last salary.

Accepted Answer

Pension Plan

Question 11

This is the government agency in charge of stocks and bonds.

Accepted Answer

Security and Exchange Commission

Question 12

Stocks in new companies that have high risk/high return?

Accepted Answer

growth stocks

Question 13

Stocks in stable long standing corporations with a history of dividends and profits?

Accepted Answer

blue chip stocks.

Question 14

Being a creditor of a company is obtained through

Accepted Answer

bonds.

Question 15

The ease of converting an investment to cash is known as

Accepted Answer

liquidity

Question 16

Interest paid on the principal and previous interest earned is known as

Accepted Answer

compound.

Question 17

Which of the following is the least liquid investment?

Accepted Answer

land/real estate

Question 18

Ownership in a company is obtained through

Accepted Answer

stocks.

Question 19

A portion of a company's profits paid to investors each year is known as

Accepted Answer

dividends.

Questions 19