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Saving & Investing Test Review Flashcards | StudBud
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Saving & Investing Test Review
Saving & Investing Test Review
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1
Burns bought 100 shares of Google for $567.00 per share, how much did the purchase cost?
$5,670
$56,700
$567,000
2
Making savings & investing your most important expense.
Buy & hold
Asset allocation
Pay yourself first
3
Dillon wanted to open a savings account and begin an investment plan, he should go to
Bank/Credit Union
The Internet
Brokerage firm
Insurance company
4
What do CDs, Money Market Accounts and Regular Savings Accounts have in common?
FDIC Insured
High rate of return, high investment risk
Purchased through stock brokers
Top of Investment Pyramid
5
Corporate, Federal Government, Municipal are
Types of mutual funds
Types of bonds
Types of brokerage firms
Types of savings accounts
6
Which type of stock gives the shareholder voting rights in a corporation?
Common
Preferred
7
An increase in the market value of an asset.
Dividends
Capital gains/Appreciation
Interest
Depreciation
8
Oversees the trade of securities markets, stock exchanges and licenses brokers.
Treasury Department
Securities & Exchange Commission
FDIC
Federal Reserve
9
If you wanted to save up to take your significant other to prom you would probably use
Corporate bond
Regular savings account
Mutual fund
Checking account
10
Earnings and principal in an account are not taxed until they are withdrawn.
Tax deferred
Tax exempt
Tax deductible
11
Mutual funds experience compounding through the
Time value of money
Additional contributions from the owner
Interest earned
Dividend reinvestment plan
12
Professional management, diversification, easy to start and add to are characteristics of
Real estate
Mutual funds
Trust funds
Savings accounts
13
Mary has a 401K, several CDs, U S Savings Bonds, and Mutual Funds; this makes up Mary's
Investment club
Asset allocation
Bank accounts
Portfolio
14
Bonds and savings accounts both earn ___ for the owner.
Capital gains
Rent
Interest
Dividends
15
How much of net pay do the experts recommend goes toward saving and investing?
30%
50%
At least 10%
25%
16
On the investment pyramid, the safest and lowest return investments are
On top
On the bottom
Spread throughout
In the middle
17
A retirement plan approved by the IRS exclusively for self-employed individuals
Keogh Plan
Roth IRA
Traditional IRA
Roth 401K
18
FDIC/NCUA depositor insurance covers bank deposits up to
$500,000
$100,000
$250,000
$1,000,000
19
When establishing an emergency fund, remember it is a large goal and
Set smaller goals to reach first some is better than none
Don't start until you can reach the goal in 3 years
It should be the most important goal give up everything else
If the goal looks too big, don't bother
20
Annuities are contracts with ____ that offer income in the future.
Brokerage firms
Stock exchanges
Banks
Insurance companies
21
Rent would be income associated with
Real estate
Stocks
Mutual funds
Bonds
22
Two things that should make you want to start saving and investing early in life are
Time & Compounding
Principal & Interest
Principal and Time
Interest & Time