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Money Matters - Chapter 10 Review Flashcards | StudBud
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Money Matters - Chapter 10 Review
Money Matters - Chapter 10 Review
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Questions
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Answers
1
The potential for change in the value of an investment is called:
Industry Risk
Investment Risk
Inflation Risk
Political Risk
2
A measure of how quickly an asset can be converted to cash is called:
Liquidity
Exchange Rate
Emergency Fund
3
A strategy that involves a planned approach to making investments on a regular basis is called Systematic Investing.
True
False
4
An investment that will
not
be taxed until a later time is
tax-deferred
nontaxable
tax-exempt
tax-free
5
The ability to meet current and future needs while living comfortably is called Financial Security.
True
False
6
The emphasis of savings is on
risky investments
the accumulation of weatlh
safety of principal
growth over time
7
A postponement of taxes to be paid is called Tax Exempt
False
True
8
The chance that the actions taken by the government will affect your investment is called:
Political Risk
Industry Risk
Investment Risk
9
One example of an asset is a house that money is still owed on.
True
False
10
A bear market is a prolonged period of rising stock prices and general feeling of investor optimism.
False
True
11
A fund or organization established and maintained for the purpose of supporting an institution or cause is called:
Foundation
Wealth
Estate
12
Calculating the Return on Investment (ROI): You boutght an investment for $500 and received a profit of $18.
0.036
27.78
3.6
13
The chance that factors affecting an industry as a whole will affect the value of an investment is called:
Investment Risk
Inflation Risk
Industry Risk
Political Risk
14
A short-term goal is one that is completed in less than one year
True
False
15
A period of steadily decreasing stock prices and investor pessimism is called a bull market.
False
True
16
Saving money before you do anything else with your paycheck is called:
Savings
"Pay Yourself First"
Wealth
17
A strategy to earn more on your money than the rate of inflation is called:
Savings
Investing
Liquidity
18
Which of the following is
not
a systematic saving and investing strategy?
day trading
dollar-cost averaging
investment tracking
market timing
19
Money set aside for the future is called
Emergency Fund
Savings
Investing
20
Which of the following is a risk-free investment?
corporate bonds
money market accounts
real estate
stocks
21
Interest that is not subject to taxation is called Tax Deferral.
True
False
22
A strategy that involves regularly setting aside cash that can be used to achieve goals is called Systematic Savings.
True
False
23
The chance that the rate of inflation will rise faster than yhour investment's rate of return in called:
Industry Risk
Political Risk
Investment Risk
Inflation Risk
24
A portion of a corporation's profit distributed to stockholders is called a(n)
dividend
interest payment
return on investment
gain on principal
25
Calculate the Return on Investment (ROI): Your initial investment was $12000. Your profit when you sold was $2500.
20.83
0.21
4.8