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Money Management_Bernard Flashcards | StudBud
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Money Management_Bernard
Money Management_Bernard
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StudBud Administration
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Unit 2
Flashcards
18 cards
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Practice quiz
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Host live
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Questions
18
Answers
1
Securities include
bonds.
shares of stock.
mutual funds.
all of the above
2
If a company doesn’t use its profits to pay dividends, it might invest in new product research.
False
True
3
A small amount invested regularly can add up to a large amount over time.
False
True
4
What is the general rule in investing?
buy high, sell low
buy low, sell high
5
Money Market Funds require high balances.
True
False
6
After the IPO, person to person trading is considered the ________ market.
Secondary market
Primary market
7
The 52 week range tells us
the prediction of the stock price in one year
the high and low of the stock price over the last year
the high and low of the stock price over 6 months
the prediction of the stock price in 6 months
8
There are only two types of bonds you can buy: federal government bonds and municipal bonds.
False
True
9
A Certificate of Deposit (CD)
has a fixed rate for its duration.
offers a higher interest rate than a savings account.
has a penalty for early withdrawal.
All of the above
10
Buyers and sellers trade in the primary market.
False
True
11
A CD has a time constraint, so it earns a higher interest rate than savings accounts.
False
True
12
Where is an initial public offering released?
Primary market
Secondary market
13
People should start to save for retirement
when they turn 30.
only if they do not have a retirement plan at work.
as soon as possible.
five years before they retire.
14
A mutual fund is a good way to diversify your investments.
False
True
15
If you put money into a bank’s savings account,
you are lending money to the bank.
you are lending money to your creditors.
you are taking a huge financial risk.
you will be wealthy when you retire.
16
Which of the following is the largest stock exchange?
New York Stock Exchange
American Stock Exchange
Chicago Board of Trade
17
Who releases the IPO?
Investment banker
Company
Investor
18
When corporations or governments need to borrow large amounts of money, they often issue
tickets.
commodities.
stocks.
bonds.
