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Personal Finance U3 Investing Flashcards | StudBud
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Personal Finance U3 Investing
Personal Finance U3 Investing
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Unit 3 Investing and Retirement
Flashcards
15 cards
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Practice quiz
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Questions
15
Answers
1
What are the NYSE and NASDAQ examples of?
securities exchanges
credit unions
financial planners
polling places
2
Which type of market condition is best?
pig
bull
adorable baby panda
bear
3
What do you get from a financial planner?
money
dividends
advice
returns
4
What is a good example of diversification?
mutual fund
stock
certificate of deposit (CD)
collectible
5
What term describes a way to minimize risk?
liquidity
FDIX
fear
diversification
6
What does "return" mean in the stock market?
ROR = ROI
you cannot sell stocks without a receipt
trading in a share of stock or mutual fund
money gained or lost on an investment
7
What is the benefit of investing at an early age?
your parents will be happy
to take advantage of simple interest
there is no benefit - wait until you have more money
to take advantage of compounding interest
8
Which has the greatest potential for profit/loss?
mutual fund
corporate bond
government bond
stock
9
If a company goes bankrupt, which type of stock would you prefer to be holding in that company?
preferred
common
10
True or False? A company that pays dividends is usually experiencing growth or profitability.
false
true
11
What is a share of stock?
cattle
a part of a bank
something that always pays dividends
partial ownership in a company
12
Which is the safest type of investment
cryptocurrency
a stock
a mutual fund
cash
13
Stocks, bonds, and mutual funds are called....
collectibles
high risk investments
securities
savings products
14
What type of relationship does risk have with potential for profit and loss (return)?
direct: when one goes up the other goes up
none: they are not related
inverse: when one goes up the other goes down
They are cousins
15
What happens when you lower the risk of your investments?
You decrease your profit/loss
You increase your profit/loss
You decrease your potential profit/loss
You increase your potential profit/loss