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EPF Investing Module 11 Test Review Flashcards | StudBud
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EPF Investing Module 11 Test Review
EPF Investing Module 11 Test Review
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Stock Market and Investing Review
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
Jenny is a shareholder of ABC Inc. What are the portions of the company that she owns?
shares
real estate
bonds
mutual funds
2
Maria gave XYZ CO $1500 w/a guaranteed return 4% return for 5 years. End of term $1824.98, type
bond
mutual fund
stock
aggressive portfolio
3
John has $4k to earn $ on in the next 6 months by investing in the stock mkt. SAFEST + RETURN?
certificate of deposit
stock market
savings account
mutual funds
4
Which of the following is a characteristic of a money market account
cannot be transferred to another bank
limited withdrawals each month
minimum deposit is $5
earns interest for 30 years only
5
Tiffany has $ in a medium risk invment for 10 years. She wants to buy a house in 6 months, DP?
keep 1/2 $ in medium risk investment acct, 1/2 savings
put $ in a savings account
keep the $ in the medium risk investment
put $ in a high risk investmet
6
What do ownership of stocks offer?
a high rate of return
guarantee that your shares will always be valuable
all of your initial investment + profits
part ownership in a company
7
David is an extremely conservative investor. What is her best option from the following choices
government bond
corporate bond
collectibles
penny stocks
8
ABC Inc world's leading chemical producer. $80 mil in revenue last year. Which stock exchange?
New York Stock Exchange
American Stock Exchange
Dow Jones Industrial Average
NASDAQ
9
Term when the stock market prices are steadily increasing and people are optimistic?
steady market
neutral market
bull market
bear market
10
Which investment is the highest risk?
certificate of deposit
treasury notes
corporate bonds
money market account
11
What is NOT an evaluation tool used to decide to buy stock from a company?
book value
earnings per share
supply and demand
P/E ratio
12
Best description of the relationship between risk and return?
lower the potential return, the greater the risk
no relationship between risk and return
higher potential return, greater the risk
higher potential return, the lower the risk
13
Low risk investment in which your money is held for a specific period of time?
stock
certificate of deposit
mutual funds
savings accounts
14
An investment strategy where you spread your $ among different industries &types to reduce rick
diversification
risk
rate of return
investments
15
You are looking for an investment that combines stocks and bonds - which should you choose?
real estate
government bonds
mutual funds
corporate bonds
16
Major difference between stocks and bonds
stocks do not ensure a fixed rate of return, bonds do
stocks pay a fixed rate of return, bonds do not
changes in a company's profit do not affect stock prices
stocks are only issued by private companies
17
What does a high P/E ratios indicate?
stock is expensive
how much $ the company made last year
stock is inexpensive
the company will pay a dividend
18
Which typically earns the lowest rate of return?
stock
certificate of deposit
savings account
mutual funds
19
What investment is backed by the government
U. S. Treasury Bond
Mutual Fund
Real Estate
Annuity
20
Emily wants$300 each month to supplement her social security and pension - which investment
corporate bond
savings account
certificate of deposit
annuity