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Economics- Unit 5: Saving and Investing Flashcards | StudBud
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Economics- Unit 5: Saving and Investing
Economics- Unit 5: Saving and Investing
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1
Depositing your annual income tax return into an account until you have enough to buy a new car:
Investing
Saving
2
A claim of ownership in a corporation that can be purchased by ordinary people:
Stocks
Bonds
Index fund
Mutual Fund
3
What is a 401(k) retirement account?
A retirement plan where the employer pays you a certain amount of money
A retirement plan only offered in certain job fields
An employer-sponsored retirement savings plan that offers matching
A retirement contribution plan where you contribute 20% of your paycheck
4
A stock market index of 30 prominent companies listed on stock exchanges in the United States:
Stock Exchange
S&P 500
Dow Jones
Index Fund
5
Why shouldn’t you keep your emergency fund money in your checking account?
Money in a checking account could be used for long term financial goals
An Emergency fund should be used for investing purposes only
You do not want to ever access the money in your emergency fund
An emergency fund account should not be used for everyday purchases
6
Which of the following is the best example of a short term goal?
Saving for college
Saving for new tires
Saving for retirement
Saving for a house
7
A loan made to a large organization like a government or corporation:
Index Fund
Mutual Fund
Stocks
Bonds
8
Contributing 2% of your paycheck to a 401(k) plan offered through your job:
Investing
Saving
9
Which of the following is the best example of a long term goal? (more than one answer here)
Saving for a house
Saving for college
Saving for retirement
Saving for new tires
10
What is a Roth IRA retirement account?
An account that can only be accessed once you contribute a certain amount
An account that can only be accessed once you turn 60 and is taxed once
An account that offers tax-free growth and tax-free withdrawals
An account that offers 50% taxable income 50% taxable withdrawals
11
Investing is for what kind financial goals?
Short term
Medium term
Long term
A and B
12
Buying shares of stock in the new trending tech company:
Saving
Investing
13
A fund that may own multiple assets and is managed by a professional investor:
Stocks
Mutual Fund
Index Fund
Bonds
14
What is the "Budgeting Rule" we discussed in class? (How should you categorize your income?)
50% to savings, 30% to needs, and 20% to wants
50% to wants, 30% to savings, and 20% to needs
50% to needs, 30% to wants, and 20% to savings
15
Saving is for what kind financial goals?
A and B
Short term
Long term
Medium term
16
Which of the following would be the best reason to tap into your emergency fund?
Buy a new TV to replace a broken TV
Buy books for college
Pay your cell phone bill
Pay $500 deductible after a car accident
17
Tracks the stock performance of 500 of the top companies listed on stock exchanges in U.S:
Dow Jones
Mutual Fund
Bonds
S&P 500
18
A passively managed portfolio that mirrors the companies and performance of a market index:
Index Fund
Mutual Fund
Bonds
Stocks
19
All of the following are challenges to saving EXCEPT:
Social media influences
Advertisments to promote a savings account
Impulse buying
Credit cards encourage spending
20
All of the following are tips you would give a friend who is beginning to invest EXCEPT:
Invest in unproven stocks, be complex in your investments
Know when to enter (best/worst time to invest)
Diversify your portfolio
Have patience
21
An example of this fund is the S&P 500:
Bonds
Index fund
Stocks
Mutual fund
22
Putting $15 per paycheck into an account to help pay for books during college:
Saving
Investing
