Personal Finance Theme 5 Review

If the markets fall by more than 20% then we have entered a _______.

Short-term capital gains are ____ than long term capital gains.

When an investment is sold for more than the purchase price.

The ease with which an investment can be converted to cash.

Extra money paid on top of payments for the use of money.

Profit from the sale of assets such as stocks, bonds, or real estate.

Distribution of money, stock, or property that a corporation sometimes pays to a stockholder.

The largest financial advisers are monitored by the watch dog agency known as the ____.

Investors that buy and sell stocks on a daily basis, trying to beat the market.

What does IRA stand for?

Regular savings account at a bank that can be used at any time without penalty.

Which is NOT a speculative investment?

Income that is not taxed.

Of the following investments, the one with the most predictable or stable income is ____.

Income that is taxed at a later date.

An investment for retirement thats set up by your employer.

Likelihood that a business or government will not be able to return your money.

Trading stocks or bonds with information not readily available to the public.

Paper money and coins.

When it comes to investing you should “keep it _____.

Savings at a bank that cannot be withdrawn before a specific time without paying a penalty.

Amount earned on an investment after adjusting for inflation.

Money set aside to be used for future purposes.

Investment that represents partial ownership of a corporation.

A general rise in the price level.

Which of the following is NOT a type of savings bond?

The major difference between preferred stock and common stock is ____.

Liquidity risk is greatest for which of the following investments?

What are two legal ways to profit from a stock?

A risk management technique that mixes a wide variety of investments within a portfolio.