Chapter 5, 6, & 7

Social Security is designed to provide the bulk of retirement income for most families.

Simple interest makes money grow more quickly than compound interest.

Money is a limited resource.

An investment created by pooling the money of people and investing it in a several securities.

Inflation increases the value of savings.

Low-risk investments ____.

When you buy a bond, the issuer owes you money.

The living will is ____.

Simple interest is computed on ____.

A share of ownership of a corporation

The Rule of 72 is used to calculate how long it will take for savings to triple in value.

An agreement where assets and property are managed by a trustee on behalf of the beneficiaries.

Vesting is an important part of ESR plans because it gives employees the legal right to

An estate is basically everything you own.

A type of MF that deals only in high interest, short-term investments such as Tbills, and CoD.

A money market deposit account is more liquid than a certificate of deposit.

The lower the interest rate on a savings account, the higher the earnings.

Ideally, you will buy investments for the highest price and sell at the lowest price.

a formal market where securities are bought and sold by stockbrokers

The face value of a bond is the ____.

Savings or earnings that are not taxed until funds are withdrawn

Investing and saving are the same thing.

The most actively traded U.S. government bonds are ____.

The government institution that processes a deceased individual’s will and estate

A contract with an insurance company that provides income for a set period of time or for life.

a savings tool in which money is deposited for period and earns a set annual rate of interest

Interest computed only on the principal

The rate of yearly earnings from an account, including compound interest

A living will is instructions you wish to be followed if you become unable to make decisions

Advantages of investing in a mutual fund include all except ____.

IRAs offer consumers the opportunity to make tax deferred contributions to a retirement fund.

Spreading risk by putting money in a variety of investments.

Liquidity of savings refers to ____.

The number of years it will take to double savings at a 3 percent annual interest rate is ____.

Real estate is among the safest investments for beginning investors.

The more often interest is compounded, the faster savings grow.

An investment portfolio is the collection of stocks, bonds, and other securities a person owns.

A person appointed to carry out the terms outlined in a will.

instructions for medical treatment if a person is unable to make medical decisions.

Bonds range from safe to risky depending on the ____.

In the investment world, yield refers to the ____.

A certificate of deposit is a good savings tool to use for an emergency fund.

Compound interest is computed on ____.

Which of the following does not apply to a certificate of deposit?

A savings plan consists of all of the following except ____.

A legal document that gives a detailed description of a security.

People should be able to take care of all their own investments with no help fromprofessionals.

When someone dies without a will, ____.

A method used to estimate the amount of time or interest it will take for savings to double

Which of the following is not a type of security?

A savings account that pays interest and allows you to make deposits and withdrawals

An emergency fund should contain enough money to cover two months of living expenses.

Regular savings accounts offer the highest interest earnings of all savings choices.

Growth of savings for retirement depends on ____.

A person or institution named to manage an estate on behalf of the beneficiaries.

When you buy stock in a corporation, you become part owner of that company.

The annual interest rate needed to double savings in 10 years is ____.

a portion of a company's earnings paid to stockbrokers

Taxpayers usually avoid paying taxes on IRA and earnings if they withdraw the funds

People invest to ____.

An increase in the value of an investment

The primary objectives of estate planning include ____.

The possessions, such as savings, investments, and insurance, a person leaves when they dies.

A legal document stating a person’s wishes for his or her estate after death.

Earnings that are free of certain taxes

Upon your death, you need a will to ____.

Interest figured on money deposited plus interest

Which of the following does not apply to a money market deposit account?

Investing is ____.

High-risk investments often offer the possibility of big gains or big losses.

Which of the following ways of figuring interest on savings will produce the most earnings?

A savings tool that loans money to the govt. The BH will be repaid with interest at maturity.