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Unit 2: Saving & Investing Test Review Flashcards | StudBud
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Unit 2: Saving & Investing Test Review
Unit 2: Saving & Investing Test Review
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1
An organization that exists to benefit others through human service or other charitable purpose
Non-Profit organization
For profit organization
An organization
A business
2
what is a dividend
being financially stable
excess profits paid regularly by a company to its shareholders.
a way to transfer money
2 divisions
3
What kind of fund trades like a common stock on a stock exchange?
Index Funds
Specialty Funds
Exchange Traded Fund
Equity Funds
4
Business in which the primary function is to receive, transfer, and lend money
Debit Card
Commercial Bank
Payee
Money
5
What is FDIC?
Optional coverage you can purchase
Protection for customers' deposits @ banking institutions
Insurance to protect against fraud
Reqirement for online banking
6
What is compound interest?
interest added to principal – interest earned on interest
interest added to interest – interest earned on principal
When an investor has to pay extra interest on taxable income
When interest is subtracted from principal
7
Wheat, cattle, energy products, like oil and natural gas, & metals like gold, silver are known as...
Commodities
Stock Options
Depravities
Exchange Traded Stocks
8
What is a financial asset?
Claim on both a paper and intangible object
Claim on a tangible object to do whatever to it you like
Your neighbor who is an accountant
Paper claim on property or money that belongs to you, such a CD, or bond.
9
What is an investment portfolio?
a collection that can only be made up of stocks
a collection of art work where the subject is investing
a collection of cash money
a general term for an investor's collection of securities
10
What is a S.M.A.R.T. goal?
specific, measurable, achievable, realistic, and timely
snail, monkey, ape, rabbit, and tiger
sky, moon, air, rose, and tree
soda, milk, apple, rice, and tea.
11
What is a stock?
An investment in a particular bank account
Partial ownership in a company
A large corporation
A particular business
12
What is the definition of Capital Gain?
When you sell an asset for lower than what you paid for it
When you sell an asset for higher than what you paid for it
When you sell an asset for what you paid for it
13
a type of financial institution
Statutory deductions
FICA
Health Insurance
Credit Union
14
What is a mutual fund?
A tool for diversifying your portfolio
An investment in one stock
A collection of stocks, bonds, and other securities
A fund that is mutually agreed upon by you and me
15
What is the 50/30/20 Rule?
50% wants, 30% needs. 20% savings
50% needs, 30% wants, 20% taxes
50% savings, 30% wants, 20% needs
50% needs, 30% wants, 20% savings
16
What is a debit card?
A piece of paper that uses money from your bank account to buy things.
A card that uses money from a checking account to pay for things.
To ask to use something, then give it back later.
Coins and bills used to pay for things
17
The Roth IRA is different because...
you pay taxes now... not later
you pay taxes later... not now
18
What is an Index Fund?
Type of mutual fund w/ lower fees & invests in companies from indexes.
a type of mutual fund with higher fees
a list of mutual funds in alphabetical order
a mutual fund that is made up of only stocks
19
When a person transfers money to another this is called...
Loan
Financial exchange
Money pass
Commercial lending
20
What is a Credit Union?
A type of school for bankers.
A nonprofit organization, that serves members.
An international bank that charges nominal fees.
A place where taxes are filed.
21
Risk tolerance can be described as
Revenue minus expenses
A Strategy in which you spread your money among many industry sectors
Total number of shares traded on a given day
Ability to accept some loss or all of the money you invested
22
What is a bond?
Bond. James Bond
A private bank account with little interest
A loan that an investor provides to a business or government
A get out of jail card
23
Define Emergency Fund
Money for emergency
monthly expenses
pocket expenses
Extra money set aside to be used for unpredictable expenses
24
What makes up the financial market system?
Banks, credit unions, insurance companies, pension funds, etc.
Tax evaders, criminals, and the penal system
Investors and borrowers
Individuals, companies, traders, government organisations
25
One long term investment strategy is known as "buy-and-hold."
false
true
26
Where are stocks and other securities bought and sold?
Costco
Nowhere
Stock Exchange
On the Streets
27
Why does the U.S. government issue U.S. savings bonds?
To improve its bond rating
To earn interest
To borrow money to pay for government expenditures
To raise taxes
28
Certificate of Deposit (CD)
A small disk that spins around and plays audio
Investment that earns interest over a specific time
One of those slips that you write to keep track of deposits
A disk?
29
401(k)'s are offered by ?
Banks
The government
Credit companies
Private corporations & businesses
