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Financial Literacy - Investments Review Flashcards | StudBud
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Financial Literacy - Investments Review
Financial Literacy - Investments Review
20 terms
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#investments
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
Which type of bond is safest?
Corporate Bond
US Treasury Bond
Municipal Bond
2
Select the answer with the investment risks in order from HIGHEST to LOWEST.
Stocks, Mutual Funds, Bonds, CDs
Stocks, Bonds, Mutual Funds, CDs
Mutual Funds, Bonds, CDs, Stocks
CDs, Bonds, Mutual Funds, Stocks
3
If a company files for bankruptcy, which security is most at risk of becoming worthless?
All of the above
Common Stock
Preferred Stock
Bond
4
The S&P 500 is a ___ index.
Price-weighted
Market-weighted
5
Stocks are riskier than bonds because when you purchase a stock you own part of the company.
True
False
6
Where brokers buy and sell stocks for their clients and firms on an actual exchange floor.
NYSE
S&P 500
SEC
NASDAQ
7
Mutual Funds are extremely high risk investments.
True
False
8
The Securities and Exchange Commission protects _____.
Corporations selling stocks
Investors investing in stocks
Banks loaning money
Investors with cash in savings accounts
9
Identify the simple interest formula
Interest Earned=Principal x Interest Rate x Time
Interest Earned = Principal / Interest Rate / Time
Interest Earned = Principal x Time
Interest Earned = Principal + Interest Rate + Time
10
A certificate of deposit must be held for a set amount of time such as six months or a year.
True
False
11
Type of stock for companies that are not established - very risky!
Preferred Stock
Nickel Stock
Blue Chip Common Stock
Penny Stock
12
Using compound interest: $1,000 at 9% interest over 5 years. What is the total interest earned?
$1,538.62
$538.62
$1,000
$127.04
13
You have been given $1,000, if you want to use the money for college, which is your best option
529 Savings Account
Certificate of Deposite
Mutual Funds
Traditional Savings Account
14
Calculate simple interest: $100 at 6% invested for 3 years. What will the investment worth be?
$118
$136
$112
$100
15
A mutual fund is less risky than a stock because...
It only includes Blue Chip Common Stocks
It is comprised of all bonds, no stocks
It is a combination of stocks and bonds
It does not contain stocks or bonds
16
Uses the daily stock prices of 30 companies to calculate the overall health of the stock market
Dow Jones
S&P 500
NYSE
NASDAQ
17
Money deposited into an account, has low interest rates. Money can be taken out for no penalty.
Stocks
Savings Account
Mutual Fund
Checking Account
18
Which investment means you are LOANING money to the organization, government or company?
Bond
Stock
19
Saving & investing differ b/c of rate of return, risk, inflation protection, & funds available.
False
True
20
Investing is often riskier than saving?
False
True
