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Unit 4 Test Review Flashcards | StudBud
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Unit 4 Test Review
Unit 4 Test Review
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savings, investments, and retirements
Flashcards
18 cards
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Questions
18
Answers
1
An arrangement that allows a third party to hold assets on behalf of a beneficiary:
trusts
living will
will
2
Which of the following is NOT a type of savings account?
Certificates of deposit (CD)
Traditional
Debit
Money market funds
3
There are Corporate and Municipal Bonds. Which one is issued by the state, county, and city governments?
Corporate bonds
Municipal Bonds
4
A fixed sum of money paid to someone each year (usually for the rest of their life) is a/an _______________.
principal
annuity
investor
5
Which of the following is a DISADVANTAGE of a 401K?
investors may lack knowledge
automatic payroll deductions
tax-deferred growth of savings
employers match contributions
6
Which type of IRA has the contributions taxed, but not the withdraws?
traditional IRA
Roth IRA
7
Earned income from selling an asset for more than the purchase price is a:
annuity
capital gain
appreciation
bond
8
Purchasing a financial product or valuable item with the goal of increasing wealth over time is called Investing!
False
True
9
Which statement about simple interest vs compound interest is FALSE?
Simple interest: you earn interest on your initial deposit
Compound interest earns you more money in the long run
Compound: earn interest on initial deposit AND more as you go along
Simple interest will earn you more money in the long run
10
How do you establish your savings?
all of the above
use direct deposit
pay yourself first
let savings grow, reduce spending, increase savings
11
What funds employees with a retirement plan?
a Security Act
a 302B
a 401K
none of these
12
Which of the following is an "advantage" of valuable goods?
difficult to store
value is not eroded by inflation
less liquid
no guarantee return
13
A Power of Attorney is the person named to oversee the management of a deceased person's affairs.
True
False
14
How much money does the typical real estate investor make?
$30,000 to $50,000 a year
$100,000- $300,000 a year
$70,000 to $124,000 a year
15
A Common Stock does NOT give you voting privileges, but Preferred stock DOES.
true
false
16
Which is a type of Investment?
securities (stocks, bonds, mutal funds)
valuable goods
all of these
real estate
17
How many months should you have saved up for an adequate emergency fund?
6-12 months
3-8 months
10-20 months
1-2 months
18
Which are examples of Valuable Goods?
rare coins, art, gold, emeralds, books, diamonds
beach visits, wildlife viewing, snorkeling
