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Module 4: Investing Test Review Flashcards | StudBud
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Module 4: Investing Test Review
Module 4: Investing Test Review
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1
Which of he following statements is
true
about mutual funds?
guaranteed returns
only include stock funds
convenient and professionally managed
you choose what stocks to invest
2
true or false. Minors have to wait until they are adults to invest
true
false
3
true or false. most wealthy people make their money by winning the lottery or inheriting $$
true
false
4
U buy Hershey stock U share ownership in them & get the vote what type of chocolate they make
True
False
5
Which of the following is not one of the 3 steps to build wealth?
have enough money to invest
take a nap
put your money to work by investing
make a plan
6
earning interest on previously earned interest plus the principal amount....
compound interest
simple interest
complex interest
growth interest
7
Which of the following have the highest risk?
money market account
savings bond
gov bonds
stocks
8
true or false. the best time to start investing is after you've had a paying job for 10 years
True
False
9
an investment that you believe has the potential to increase over time...
income
corporate
growth
asset
10
Which of the following is not an example of an investment?
buying a car
buying rental property
buying equipment for a new business
buying a business
11
the abbreviation of a companies name used in the stock market.
taker
tacker
tocker
ticker
12
Spreading your money over different savings and investments...
diversification
dicretionary
dividing
dependent
13
"A dollar today is worth more than a dollar tomorrow" explains what???
time lapse of money
time idea of dollars
investing
time value of money
14
investments that provide regular earnings...
asset
growth
income
increase
15
What is the historical long-term annual avg rate of inflation?
3%
30%
4%
5%
16
if Monica invests now and her brother Marcus invest in 5 years, who will have more $$ in 40 yrs
marcus
monica
none of the above
they will have the same
17
the overall increase in prices over time
investment
inflation
diversification
growth
18
given the same principal, interest rate & time period which of the following will earn more 4?
compounded semiannually
they are all the same
compounded daily
compounded quarterly
19
Which of the following has the
lowest
potential investment risk?
collectibles
real estate
stocks
savings account
20
Something of value that can be changed into cash...
liability
compound
investing
asset
21
the basic rule of a risk-to-return relationship is that...
lower the risk, higher the return
higher the risk, lower the return
higher the risk, higher the return
they are not related