Personal Finance Theme 5 Review

Savings at a bank that cannot be withdrawn before a specific time without paying a penalty.

Extra money paid on top of payments for the use of money.

Short-term capital gains are ____ than long term capital gains.

What are two legal ways to profit from a stock?

Investment that represents partial ownership of a corporation.

Income that is not taxed.

Money set aside to be used for future purposes.

The ease with which an investment can be converted to cash.

The major difference between preferred stock and common stock is ____.

When an investment is sold for more than the purchase price.

A risk management technique that mixes a wide variety of investments within a portfolio.

Regular savings account at a bank that can be used at any time without penalty.

Amount earned on an investment after adjusting for inflation.

If the markets fall by more than 20% then we have entered a _______.

The largest financial advisers are monitored by the watch dog agency known as the ____.

Investors that buy and sell stocks on a daily basis, trying to beat the market.

A general rise in the price level.

Which of the following is NOT a type of savings bond?

Profit from the sale of assets such as stocks, bonds, or real estate.

An investment for retirement thats set up by your employer.

Distribution of money, stock, or property that a corporation sometimes pays to a stockholder.

When it comes to investing you should “keep it _____.

Of the following investments, the one with the most predictable or stable income is ____.

Trading stocks or bonds with information not readily available to the public.

Liquidity risk is greatest for which of the following investments?

Likelihood that a business or government will not be able to return your money.

What does IRA stand for?

Paper money and coins.

Income that is taxed at a later date.

Which is NOT a speculative investment?