Investment and Retirement Financial Literacy Flashcards

1

True or false: Higher risk means lower returns

False
True

2

What is a pump and dump?

Short selling
Long-term investing
Hype and sell
Buy and hold

3

What is compound interest?

Fixed interest
Simple interest
Variable interest
Interest on interest

4

What is a trust?

Buys stocks
Manages assets
Saves money
Pays taxes

5

Which is a major stock index?

Nikkei 225
DAX
FTSE 100
S&P 500

6

What is a beneficiary designation?

Saves money
Buys stocks
Directs assets
Pays taxes

7

What is the SEC?

Manages banks
Protects investors
Issues bonds
Sets interest rates

8

What is a will?

Insurance policy
Tax document
Investment plan
Asset distribution

9

What is the Rule of 72?

Determine risk
Calculate interest
Estimate doubling time
Predict stock prices

10

What is diversification?

Reducing risk
Selling all assets
Increasing risk
Buying one stock

11

What shapes our financial future?

Travel plans
Shopping habits
Diet choices
Investment decisions

12

What is asset allocation?

Spreading investments
Buying stocks
Saving money
Selling bonds

13

What is a Ponzi scheme?

Real profits
New pays old
Cryptocurrency
Stock trading

14

What reflects company value?

GDP
Stock prices
Inflation
Interest rates

15

What is a 401(k)?

Tax-free
Real estate
Government bond
Employer-sponsored

16

What is a Roth IRA?

Employer-sponsored
Tax-free withdrawals
Taxed at withdrawal
No income limits

17

When can you claim Social Security?

At 75
At 60
At 55
As early as 62

18

Which is a low-risk investment?

Savings account
Growth stocks
Cryptocurrencies
Real estate

19

How long to double at 8% interest?

15 years
12 years
9 years
5 years

Investment and Retirement Financial Literacy

Questions 19

Investment and Retirement Financial Literacy

Questions 19