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Financial Literacy - Investments Review Flashcards | StudBud
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Financial Literacy - Investments Review
Financial Literacy - Investments Review
20 terms
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#investments
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
Mutual Funds are extremely high risk investments.
True
False
2
Calculate simple interest: $100 at 6% invested for 3 years. What will the investment worth be?
$112
$118
$136
$100
3
Which type of bond is safest?
US Treasury Bond
Corporate Bond
Municipal Bond
4
You have been given $1,000, if you want to use the money for college, which is your best option
529 Savings Account
Traditional Savings Account
Mutual Funds
Certificate of Deposite
5
The Securities and Exchange Commission protects _____.
Investors investing in stocks
Investors with cash in savings accounts
Corporations selling stocks
Banks loaning money
6
Using compound interest: $1,000 at 9% interest over 5 years. What is the total interest earned?
$538.62
$1,000
$127.04
$1,538.62
7
Investing is often riskier than saving?
True
False
8
Type of stock for companies that are not established - very risky!
Nickel Stock
Preferred Stock
Penny Stock
Blue Chip Common Stock
9
Which investment means you are LOANING money to the organization, government or company?
Bond
Stock
10
Stocks are riskier than bonds because when you purchase a stock you own part of the company.
False
True
11
Identify the simple interest formula
Interest Earned = Principal + Interest Rate + Time
Interest Earned=Principal x Interest Rate x Time
Interest Earned = Principal x Time
Interest Earned = Principal / Interest Rate / Time
12
Uses the daily stock prices of 30 companies to calculate the overall health of the stock market
NYSE
S&P 500
NASDAQ
Dow Jones
13
Where brokers buy and sell stocks for their clients and firms on an actual exchange floor.
SEC
NYSE
NASDAQ
S&P 500
14
A mutual fund is less risky than a stock because...
It is comprised of all bonds, no stocks
It only includes Blue Chip Common Stocks
It is a combination of stocks and bonds
It does not contain stocks or bonds
15
Saving & investing differ b/c of rate of return, risk, inflation protection, & funds available.
True
False
16
If a company files for bankruptcy, which security is most at risk of becoming worthless?
All of the above
Common Stock
Bond
Preferred Stock
17
The S&P 500 is a ___ index.
Market-weighted
Price-weighted
18
Select the answer with the investment risks in order from HIGHEST to LOWEST.
CDs, Bonds, Mutual Funds, Stocks
Stocks, Mutual Funds, Bonds, CDs
Stocks, Bonds, Mutual Funds, CDs
Mutual Funds, Bonds, CDs, Stocks
19
Money deposited into an account, has low interest rates. Money can be taken out for no penalty.
Checking Account
Stocks
Savings Account
Mutual Fund
20
A certificate of deposit must be held for a set amount of time such as six months or a year.
False
True
