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Financial Literacy Investments
Financial Literacy Investments
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Foundations in Personal Finance Chapter 2
Flashcards
25 cards
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Practice quiz
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Questions
25
Answers
1
Which mutual fund category is considered the MOST risky?
Growth / Mid Cap
Growth and Income / Large Cap
International
Aggressive Growth / Small Cap
2
The average mutual fund includes how many companies?
10 - 50
1
90 - 200
50 - 100
3
True / False. It is OK to invest for tax savings purposes.
False
True
4
Annuities are savings accounts with a(n) ___________________________.
Bank
Insurance Company
Stock Broker
Fund Manager
5
True / False. Real Estate is the least liquid consumer investment.
True
False
6
The amount of time you should plan to make an investment is ___________________
1 year
2 years
more than 5 years
5 years or less
7
What is a piece of ownership in a company or mutual fund?
Bond
Liquidity
Share
Dividend
8
The amount of time you should save for something is ____________________.
1 year
2 years
more than 5 years
5 years or less
9
Which of the following is an example of a commodity?
Annuities
Oil / Gold
Real Estate
Viaticals
10
Single Stock investing carries ________________ risk
No
High
Low
11
True / False. In a mutual fund, Investors pool their money to invest.
True
False
12
A __________ is a debt instrument
Stock
Bond
Mutual Fund
Commodity
13
T / F. It is OK to put money into something you don't understand as long as you use a Broker.
True
False
14
Which of the following is NOT a class of Mutual Funds
Growth and Income / Large Cap
Growth / Mid Cap
Commmodities and Futures
Aggresive / Small Cap
15
Which of the following has the LOWEST rate of return?
CD's
Real Estate
Bonds
Mutual Funds
16
Which term refers to the
availability
of your money.
Liquidity
Share
Risk
Diversification
17
True / False. When buying into a mutual fund, you need to check the 20 year track record.
False
True
18
What are the two types of annuities?
Stocks & Bonds
Fixed & Variable
Commodities & Futures
Oil & Gold
19
True / False.
False
True
20
Which of the following has the Highest rate of return?
Stocks
CD's
Bonds
Mutual Funds
21
Diversification ______________________ Risk
Maximizes
Lowers
22
What are
Dividends
?
Shares of stock
Profits you make from a company
Debt
Ownership in a company
23
True / False. Never Invest Using borrowed money.
False
True
24
What is the Risk Return Ratio?
As risk goes up, return goes up.
As liquidity goes up, return goes up.
As Risk goes down, return goes up.
As Risk goes up, return goes down.
25
Which word means "to spread your money around"?
Diversification
Mutual Fund
Liquidity
Risk
