Unit 6: Economics, Investment

Question 1

borrowing money from your broker to buy stock is called:

Accepted Answer

margin

Question 2

Which of the following is NOT an example of a retirement account that could be done for you?

Accepted Answer

529

Question 3

Who actually executes a person's order for stock?

Accepted Answer

Floor broker

Question 4

With these, you know exactly what you will get, so it is a fixed income investment:

Accepted Answer

bonds

Question 5

What does an companies PE ratio tell you?

Accepted Answer

Price to Earnings

Question 6

Which of the following is true?

Accepted Answer

buy fruit roll-ups when they are on sale, buy bonds when interest rates are high

Question 7

The type of bond that is very risky but possible high returns:

Accepted Answer

junk

Question 8

If you buy 1 share of stock for $25 and pay your broker $1; What is your total cost?

Accepted Answer

$26

Question 9

When should you sell short?

Accepted Answer

bear market

Question 10

Which of these is NOT a step in selling short?

Accepted Answer

buy stock from your broker

Question 11

The greatest advantage to investing in mutual funds, stocks and bonds at the same time:

Accepted Answer

diversification

Question 12

What kind of stock allows stock holders to vote for company directors?

Accepted Answer

Common

Question 13

Stocks that are considered large and safe are called:

Accepted Answer

Blue chip stocks

Question 14

What is defined as a share of ownership in a corporation?

Accepted Answer

stock

Question 15

What is the term for when you sell stock for more than you bought it?

Accepted Answer

capital gains

Question 16

What is defined as high risk in the stock market?

Accepted Answer

speculation

Question 17

Someone who has no checking or savings account in a bank is considered:

Accepted Answer

Unbanked

Question 18

The lowest a stock has been in the last year is called:

Accepted Answer

52 week low

Question 19

Which of the following is NOT a rule of investing?

Accepted Answer

Speculation

Question 20

If you buy $10,000 worth of stock on margin, how much did you pay?

Accepted Answer

$5,000

Question 21

A market that is rising is called a:

Accepted Answer

bull market

Questions 21