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Unit 5 | Retirement & Investing Flashcards | StudBud
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Unit 5 | Retirement & Investing
Unit 5 | Retirement & Investing
30 terms
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Stocks, bonds, mutual funds, and retirement accounts
Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
Describes the level of vailability of your money
Liquidity
Cost Basis
Rule of 72
Diversification
2
These types of ownership investments include gold, silver, & oil
Bonds
Commodities
Real Estate
Stocks
3
Which stock market index tracks the largest publicly traded US companies measured by market capitalization?
S&P 500
Nasdaq
Dow Jones index
Russell 2000
4
A lending Investment type in which a gov't entity or company owes you money.
Mutual Fund
ETF
Bond
Stock
5
Used to calculate how long it will take your investment to double
Interest Rate/ 72
Months/ 72
72/ Months
72/ Interest Rate
6
Priorities for establishing your solid financial foundation before you starting investing to grow wealth.
Pay off student loans & buying a car
Building a Zero Based Budget & Cancelling Credit Cards
Building a Zero Based-Budget and Getting a financial Advisor
Emergency Fund & Paying off High Interest Debt
7
A high-risk investment that is betting on a stock losing value
Futures
Shorting
Annuity
Options
8
What's the most advantageous type of account for storing your emergency fund?
Checking
Annuity
Savings
Money Market
9
market capitalization is the total value of a company's shares value at a given moment.
true
false
10
The stock market is a physical place.
Yes, it's located in most major cities around the world.
Yes and No, there are physical places where stocks are sold, but they are a
No, trading is all done online.
11
A share of ownership in one company
Mutual Fund
Commodity
Stock
Bond
12
A retirement plan for Government Workers with guaranteed benefits.
Public Pension
Roth IRA
Traditional IRA
Social Security
13
What kind of fund trades like a common stock on a stock exchange?
Exchange Traded Fund
Specialty Funds
Equity Funds
Index Funds
14
Retirement savings plan funded by a portion of your salary and often matching contributions from your employer.
401(k)
Roth IRA
403(b)
Traditional IRA
15
dividend ( stock market )
a part of a company's money that's paid to its stock holders
A fraction problem
dividing the end of a problem
information on a stock's latest trading price
16
How much should you have in an emergency fund?
6-9 months
1-3 months
9-12 months
3-6 months
17
What is a disadvantage of mutual funds?
Fees that can limit profit
Too many individuals involved
All of the above.
You can only invest in bonds
18
A type of mutual fund or ETF and replicates the movement of stocks
Credit score
Profit
Dividend
Index Fund
19
The least liquid investment type
Bond
Mutual Fund
Real estate
Stock
20
An investment savings account with an insurance company
Annuity
Stock
401(k)
403(b)
21
Which of the following accurately describes asset allocation?
Well-balanced portfolio of different stock classifications
Dividing among different asset categories based on risk
Chance your investment won't be worth as much in the future
Dividing among different asset categories based on time
22
The stock market index based on 30 large "blue chip" companies in the U.S.
Standard and Poor's 500
Dow Jones Industrial Average
AMEX
NASDAQ
23
Spreading around your investments to reduce overall risk.
Liquidity
Investing
Diversification
Inflation
24
What is an advantage of buying a mutual fund?
Load funds do not charge a sales commission
Allow investors to spread risk among several stocks and bond
All mutual funds are the same
Many mutual funds do not charge management fees
25
How is compound interest different than simple interest?
It's not different; they are one and the same
It is simple interest + interest earned on that interest
It is simple interest - interest earned on that interest
It is double the simple interest earned on an investment
26
Retirement plan for a tax-exempt institution such as a non-profit
Traditional IRA
403(b)
Roth IRA
401(k)
27
A grouping of financial assets such as stocks, bonds, mutual funds, ETFs, and cash equivalents
Assets
Diversification
Liabilities
Portfolio
28
Retirement account in which your annual contributions are not tax-deductible, but the earnings are tax-free
Roth IRA
401(k)
Traditional IRA
403(b)
29
Investors pool their money to buy shares of stock in multiple companies.
Stocks
Futures
Bonds
Mutual Fund
30
What is a bullish stock market?
When the market equilibrium does not change.
Prices are generally falling over time.
When the speculation maintains the share price index.
Prices on average are rising over time.
