UNIT 1 - Chapter 2: INVESTMENT OPTIONS

Question 1

distribution of a portion of a company's earnings, decided by the board of directors

Accepted Answer

Dividend

Question 2

fund that buys stocks in larger, established companies, medium-sized companies or growth stocks

Accepted Answer

Growth Stock Mutual Fund

Question 3

Savings account within aninsurance company

Accepted Answer

annuity

Question 4

Risk goes up, return goes up

Accepted Answer

risk return ratio

Question 5

purchasing risky investments/present possible large profits/pose high average possible of loss

Accepted Answer

Speculative

Question 6

relationship of substantial reward in comparison to the amount of risk taken

Accepted Answer

Risk Return Ratio

Question 7

Long-term investments properly diversified include the following mutual funds:

Accepted Answer

growth, growth and income,international, aggressive growth

Question 8

What is the KISS rule of investing?

Accepted Answer

Keep It Simple Stupid

Question 9

List of your investments

Accepted Answer

portfolio

Question 10

contract sold by insurance company, designed 2 provide payments 2 holder at specified intervals

Accepted Answer

Annuity

Question 11

Always check this record when investing

Accepted Answer

5-10 year track record

Question 12

account or arrangement in which one would put their money for long-term growth

Accepted Answer

Investments

Question 13

mutual fund that contains international or overseas companies

Accepted Answer

International Stock Mutual Fund

Question 14

piece of ownership in a company or mutual fund

Accepted Answer

Share

Question 15

Degree of uncertainty of the return on an investment

Accepted Answer

risk

Question 16

_____% of any 10-year period in the stock market has made money.

Accepted Answer

100

Question 17

Growth and Income Funds

Accepted Answer

large-cap

Question 18

A certificate of deposit is the best place to keep an emergency fund.

Accepted Answer

false

Question 19

mutual fund that seeks to provide maximum long-term capital growth from stocks

Accepted Answer

Aggressive Growth Stock Mutual Fund

Question 20

mutual fund containing a group of medium-sized companies that are growing

Accepted Answer

Mid-Cap Fund

Question 21

buying real estate to rent out as an investment

Accepted Answer

Rental Real Estate

Question 22

pool of money managed by an investment company and invested in multiple companies, bonds, etc.

Accepted Answer

Mutual Fund

Question 23

a food, metal, or fixed physical substance that investors buy or sell

Accepted Answer

Commodity

Question 24

Which statement is true about liquidity?

Accepted Answer

the more liquid an investment, the less return

Question 25

A savings account with a certificate is a:

Accepted Answer

C.D.

Question 26

Least liquid of all investments

Accepted Answer

rental real estate

Question 27

a list of your investments

Accepted Answer

Portfolio

Question 28

to spread around one's investment dollars among several different classes of financial assets

Accepted Answer

Diversification

Question 29

securities that represent part ownership/equity in corporation/each share is claim on its stake

Accepted Answer

Single Stocks

Question 30

quality of an asset that permits it to be converted quickly into cash without loss of value

Accepted Answer

Liquidity

Question 31

degree of uncertainty of return on an asset; in business, the likelihood of loss/reduced profit

Accepted Answer

Risk

Question 32

Aggressive Growth Funds

Accepted Answer

small-cap

Question 33

Commodities and futures are extremely speculative and carry a high risk.

Accepted Answer

true

Question 34

term used 2 designate contracts covering the sale of financial instruments/physical commodities

Accepted Answer

Futures

Question 35

accounts at financial institutions that allow regular deposits and withdrawals.

Accepted Answer

Savings Account

Question 36

annuity that has a varying rate of return based on the mutual funds in which one has invested

Accepted Answer

Variable Annuity

Question 37

Diversification lowers your risk with investing.

Accepted Answer

true

Question 38

funds comprised of large, well-established companies

Accepted Answer

Large-Cap Fund

Question 39

debt instrument where an issuer such as corporation/municipality/government agency owes U money

Accepted Answer

Bond

Question 40

Which of the following is not agood investment?

Accepted Answer

gold, viaticals & futures

Question 41

A single stock is the best place to keep your emergency fund.

Accepted Answer

false

Question 42

Liquidity means to spread around and lower risk.

Accepted Answer

false

Question 43

mutual fund that invests in companies whose market value is less than $1 billion

Accepted Answer

Small-Cap Fund

Question 44

Piece of ownership in company stock

Accepted Answer

share

Question 45

Which one is not a type of annuity:

Accepted Answer

stable

Question 46

Spread around the risk

Accepted Answer

diversification

Question 47

type of annuity that guarantees a certain rate of return

Accepted Answer

Fixed Annuity

Question 48

Certificate of Deposit, usually at a bank; savings account w/ a slightly higher interest rate

Accepted Answer

C.D.

UNIT 1 - Chapter 2: INVESTMENT OPTIONS

Questions 48

UNIT 1 - Chapter 2: INVESTMENT OPTIONS

Questions 48