Financial Literacy

Question 1

is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies.

Accepted Answer

S & P 500

Question 2

represents a loan made by an investor to a borrower (typically corporate or governmental

Accepted Answer

Bond

Question 3

Form that individual taxpayers use to file their annual income tax returns

Accepted Answer

1040

Question 4

U.S. government agency responsible for the collection of taxes and enforcement of tax laws

Accepted Answer

IRS

Question 5

levy assessed on the positive difference between the sale price of the asset and its original purchase price

Accepted Answer

Capital Gains Tax

Question 6

The production of goods and services is based on supply and demand in the general market

Accepted Answer

Capitalism

Question 7

describes the rise and fall in production output of goods and services in an economy.

Accepted Answer

Business Cycle

Question 8

known as "shares" or "equity") is a type of security that signifies proportionate ownership in the issuing corporation

Accepted Answer

Stock

Question 9

a holding company for a multitude of businesses. It's run by chairman and CEO Warren Buffett

Accepted Answer

Berkshire Hathway

Question 10

financial market of a group of securities in which prices are rising or are expected to rise

Accepted Answer

Bull

Question 11

distribution of reward from a portion of the company's earnings and is paid to a class of its shareholders

Accepted Answer

Dividend

Question 12

used by investors and analysts to determine the relative value of a company's shares in an apples-to-apples comparison.

Accepted Answer

Price to Earnings (P/E Ratio)

Question 13

Investing scam promising high rates of return with little risk to investors.

Accepted Answer

Ponzi Scheme

Question 14

condition in which securities prices fall 20% or more from recent highs

Accepted Answer

Bear

Question 15

can be thought of as “interest on interest,” and will make a sum grow at a faster rate

Accepted Answer

Compound Interest

Questions 15