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Chapter 6.7 - Savings and Investing Flashcards | StudBud
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Chapter 6.7 - Savings and Investing
Chapter 6.7 - Savings and Investing
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Chapter 6: Savings: Starting Now! Chapter 7: Investment Options: Risks and Rewards
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Answers
1
An investment in the ownership of a corporation, usually represented by shares.
Bonds
Stocks
Dividends
Commodities
2
Unlike securities, savings bonds are _________________. (Best Answer)
Non-Transferable
Tax-deductable
Taxed
Transferable
3
What does it mean to pay yourself first?
Set aside money before you do anything else
Go spend it on something you enjoy
Pay your bills
4
A share of stock is a unit of ownership in a corporation
True
False
5
A T-bill is a government bond
False
True
6
Contracts to buy or sell a comodity, stock, other item at set price,at a specfic date in future
Bonds
Futures
Commodities
Options
7
A company's profits are paid to shareholders in the form of commodities
False
True
8
A financial adviser might charge either an hourly rate or a fee for service
False
True
9
Safe investments in the ownership of large, well-respected, well-established companies
GLOBAL Stocks
Blue-chip Stocks
European 500 Stocks
Penny Stocks
10
condition that exists when investors are optimistic...
Sloth Market
Kangaroo Market
Bear Market
Bull Market
11
A stock whose owner has voting rights...
Load Stock
Common Stock
Capital Stock
Preferred Stock
12
When you need more money to buy the things you want because your dollar does not stretch as far
The erosion of buying power
The financial precautions of society
The liquidation of assets
The depletion of revenue
13
Saving money, like being physically fit, is about patience and discipline
True
False
14
condition that exists when investors are pessimistic...
T-Rex Market
Bull Market
Constipated Market
Bear Market
15
Why is investing in a mutual fund usually safer than investing all your money in single company
Losses in one company might be offset by another,diversified
Mutual funds invest in more than 1 company, eliminating risk
16
Real estate includes property such as land and houses or other buildings
False
True
17
Bulk items such as grains, metals, and food that are bought and sold on a __________ exchange.
Futures
Commodities
Options
Penny Stock
18
People investing their money have two
main
considerations. What are they?
Time and Value
Securities and Mutual Funds
Stocks and Bonds
Risk and Return
19
The ________ is the yearly rate of return on your investment
compounding return
APY
Return
Capitial Gain
20
Indicator of overall stock mkt performance based on the avg stock prices of 500 top UScompanies
Fortune 500
S&P 500 Index
NYSE Magazine
Dow Jones 500
21
The largest U.S. stock market in terms of number of
companies listed
AUSTMKT
NASDAQ
NYSE
AMEX
22
What type of broker is likely to provide financial advice?
Discount broker
Full-service broker
Broke broker
23
Sold at half it's face value
Securities
Savings Bonds
Money Market Account
Certificate of Deposit
24
The Fortune 500 is a stock index
False
True
25
A type of savings account that invests in securities
Securities
Savings Bonds
Certificate of Deposit
Money Market Account
26
Company earnings distributed to shareholders...
Stocks
Dividends
Bonds
Capital Gain
27
Which type of investment carries more risk: Stocks or Bonds?
Bonds
Stocks
28
Mutual funds that do not require an up-front fee.
No-Load Funds
Stock fund
Load Funds
29
A general rule of thumb is to have enough money to cover living expenses for 3-6 months
True
False
30
A stock whose owner receives a fixed dividend...
Liquidation Stock
Common Stock
Capital Stock
Preferred Stock
31
A personal retirement plan in which the original contributions are not tax-deductible
IRA
Roth-IRA
SEP-IRA
All of the above
32
Mutual funds that charge commission every time shares are sold
No-Load Fund
Load Fund
33
Apromise to pay acertain amt on certain date, issued by a corp or govn forpurpose ofborrowing $
Penny Stock
Bond
Stock
Mutual Fund
34
What does the G stand for in ESG?
Gain
Government
Governance
Good
35
The worlds largest stock market in terms of
dollar volume
AUSTMKT
NASDAQ
NYSE
AMEX
36
Regularly putting part of your paycheck into savings helps you reach your financial goals.
False
True
37
Some savings bonds continue to earn interest after they reach maturity
True
False
38
What is a windfall of money?
Expected money coming in large sums
Money from a friend or relative in bulk
Unexpected money
Corporate profits
39
The ability of an asset to be quickly and easily converted into cash
Money Market Conversion
Liquidity
Certificate of deposit
Interest captial
40
A daily average of the stock prices of thirty of the largest and richest blue-chip companies..
NASDAQ Stock Index
Dow Jones Industrial Average
Wilbur 5000
Fortune 500
41
Only government officials can purchase government bonds.
False
True
42
An increase in the price of goods, or average level of prices
Liquidation
Long term savings goals
Inflation
Investing bonds
43
A list of the 500 U.S. companies with highest earnings...
S&P 500
Money Market 500
Forbes 500
Fortune 500
44
Why should you begin investing for retirement as soon as possible?
Time value of money
Commodities
Capital Gain
Liquidation
45
When a bank pays you for having money in your savings account this is called ______________ .
Withdrawal Revenue
Interest
Money Deposit
Discretionary Income
46
High risk stocks where the company is typically unknown or unproven...
Blue-chip Stocks
Penny Stocks
Red-Pringle Stocks
Dollar Stocks
47
If you put $100 in a savings account today and interest rate is 2% by the end of the year you..
Would have $120
Would have $112
Would have $102
Would have $98
48
What is NOT a step listed on, "How other reach their savings goals"?
They liquidate their assets whenever possible
They monitor their progress from start to finish
Break down their goals into small amts over period of time
They have a money mentor
49
Land and any houses or other buildings that are on it
Real Estate
Commodities
Commercial
Collectibles
50
A detailed report about the financial condition of a company, published each year
Forbes
Annual Report
Quartly report
Fortune 500
51
Documents indicating ownership
Certificate of withdrawal
Securities
Money Scrolls
Bond Atlas
52
Anyone can invest in the stock market
True
False
53
Investment in which people pool their money together to buy stocks, bonds, and other things...
Index Bond
Index Fund
Mutual Bond
Mutual Fund
54
What is an index fund?
A government issued bond managed by a brokerage firm
A Mutual Bond that allows the investor to manage the money
Mutual fund whose portfolio does not match stock indexes
Mutual fund whose portfolio matches one of the stock indexes
55
Saving money is possible if you make it a priority in your money routine
False
True
56
What is an intermediate purchase?
Stereo Equipment
All of the above
Bicycle
Computer
57
Medium and Long-term goals are _____________ goals. Choose the best answer.
Permenant
Future
Present
Temporary
58
A mutual fund is an investment in which people pool their money to buy stocks,bonds,realestate
True
False
59
the profit from the sale of assets such as stocks, bonds, or real estate
Capital Gain
Capital Profit
Simply Profit
Preferred Gain
60
provides a way for employees of small businesses and self-employed people to invest for retment
SEP-IRA
IRA
Roth IRA
403(b) plan
61
Income left over after savings and essential expenses have been accounted for
Discretionary Income
Liquidated Income
Inheritance Income
Unexpected Income
62
How do others reach their savings goals...which is
not
one of the four steps?
They have a money mentor
They monitor their progress from start to finish
They set achievable goals
They break down their goals into large amounts over time
63
What is the relationship between rate of return and risk?
Both 2 and 3
High rates of risk of lower rates of return
Low rates of return on lower rates of risk
High rates of risk of return carry a higher risk
64
Before investing your money you should meet with several bankers before deciding how to invest
False
True
65
Retirement plan that is funded at least in part by an employer
Stock-bonus plan
403(k) plan
401(A) plan
Pension
66
Interest earned on bonds is called capital gain
True
False
67
a retirement plan that allows employees to share in the company's profits
profit-sharing plan
stock-bonus plan
403(b) plan
401(k) plan
68
If you purchase a $200 jacket with credit at a 20% interest rate, the jacket could cost you....
$260
$240
$300
any of the above depending on you the payments you make
69
Is planning for emergencies a short, medium, or long-term goal?
All of the above
Medium-term goal
Short-term goal
Long-term goal
70
Savings goals can be short, medium, and long term
True
Falsae
