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B184 Savings and Investing Flashcards | StudBud
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B184 Savings and Investing
B184 Savings and Investing
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1
condition that exists when investors are pessimistic...
Bear Market
Bull Market
Constipated Market
T-Rex Market
2
Investment in which people pool their money together to buy stocks, bonds, and other things...
Mutual Bond
Index Fund
Mutual Fund
Index Bond
3
Regularly putting part of your paycheck into savings helps you reach your financial goals.
False
True
4
Why is it important to start investing as soon as possible?
Fees on investments are cheaper when you are younger
You take less risk when you are young, so money will be safe
You have more time for your money to compound
Investing is an easy way to make quick money
5
Safe investments in the ownership of large, well-respected, well-established companies
GLOBAL Stocks
European 500 Stocks
Blue-chip Stocks
Penny Stocks
6
Anyone can invest in the stock market
False
True
7
What is a form of investing?
Buying food
Selling goods or services
Real estate
Earning income
8
Investing means:
putting your money to work earning more money
taking lots of risks not knowing the results
saving your money
keeping your money safe
9
People generally have annuities or 401K plans to pay for
retirement
vacations
college education
mortgages
10
Compounding Interest
Rise in general price levels, reducing the value of money
Process where interest is earned on principal & previously earned interest
Interest earned after compounding for one year on a $100 deposit
Earnings on savings
11
How is compound interest different than simple interest?
It is simple interest + interest earned on that interest
It's not different; they are one and the same
It is double the simple interest earned on an investment
It is simple interest - interest earned on that interest
12
Growth stocks
Are those with a market capitalization of between $2 billion & $200 billion
Are mainly good investments for those who need income from dividends
Put most of income into growing the business & have potential to do well
Are easily identified because they are everyday household names
13
People investing their money have two
main
considerations. What are they?
Stocks and Bonds
Risk and Return
Time and Value
Securities and Mutual Funds
14
A financial adviser might charge either an hourly rate or a fee for service
True
False
15
Medium and Long-term goals are _____________ goals. Choose the best answer.
Future
Permenant
Temporary
Present
16
A general rule of thumb is to have enough money to cover living expenses for 3-6 months
False
True
17
Bulk items such as grains, metals, and food that are bought and sold on a __________ exchange.
Futures
Penny Stock
Options
Commodities
18
The degree of risk and the rate of return are not related within Investing.
false
true
19
What is the relationship between rate of return and risk?
High rates of risk of return carry a higher risk
High rates of risk of lower rates of return
Low rates of return on higher rates of risk
20
Savings goals can be short, medium, and long term
Falsae
True
21
Land and any houses or other buildings that are on it
Commercial
Real Estate
Commodities
Collectibles
22
The Fortune 500 is a stock index
True
False
23
(Banking/Investing) Compound interest is...
Simple interest
Interest on top of interest
24
A mutual fund is an investment in which people pool their money to buy stocks,bonds,realestate
False
True
25
Which type of investment carries more risk: Stocks or Bonds?
Bonds
Stocks
26
A company's profits are paid to shareholders in the form of commodities
True
False
27
condition that exists when investors are optimistic... Or market is trending upwards
Kangaroo Market
Bear Market
Bull Market
Sloth Market
28
High risk stocks where the company is typically unknown or unproven...
Red-Pringle Stocks
Blue-chip Stocks
Dollar Stocks
Penny Stocks
29
Why is investing in a mutual fund usually safer than investing all your money in single company
Mutual funds invest in more than 1 company, eliminating risk
Losses in one company might be offset by another,diversified
30
Which is mostly true about growth stocks?
they soar in value when times are good, but can tank
they maintain consistent value despite market fluctations
they are the most expensive to buy
all tech stocks are growth stocks
31
Only government officials can purchase government bonds.
False
True
32
Real estate includes property such as land and houses or other buildings
False
True
33
Income stocks
Have a history of paying dividends
Are stocks of well established companies with solid profit records
Remain stable during an economic decline
Reinvest their profits into the business so that it can grow
34
What does it mean to pay yourself first?
Go spend it on something you enjoy
Pay your bills
Set aside money before you do anything else
35
Investing in stocks can cause you to:
Both
Make money
Lose money
36
A promise to pay a certain amt on certain date, issued by a corp or govn forpurpose of borrowing $
Bond
Penny Stock
Stock
Mutual Fund
37
Simple interest....
is paid only on the original principal
cannot be paid by credit unions
cannont be expressed as a percentage
is another name for compound interest
38
Which type of interest is associated with Investing?
Simple
529c
Exponential
Compound
39
When investing, higher interest is...
Very Interesting
Worse
Not Important
Better
40
Company earnings distributed to shareholders...
Dividends
Stocks
Bonds
Capital Gain
41
Indicator of overall stock mkt performance based on the avg stock prices of 500 top UScompanies
NYSE Magazine
Dow Jones 500
S&P 500 Index
Fortune 500
42
Saving money is possible if you make it a priority in your money routine
True
False
43
Documents indicating ownership
Certificate of withdrawal
Money Scrolls
Bond Atlas
Securities
44
A key difference between saving and investing is
Investing has a guaranteed return, savings does not
Your money is insured when investing, it is not in savings
Saving is emergencies & goals, investing is long-term wealth
Savings is for everyone, investing is for the wealthy
45
Is planning for emergencies a short, medium, or long-term goal?
Medium-term goal
Long-term goal
All of the above
Short-term goal
46
the profit from the sale of assets such as stocks, bonds, or real estate
Capital Profit
Simply Profit
Preferred Gain
Capital Gain
47
Blue-Chip Stocks
Facilitates the trading of foreign stock is U.S. markets
associated with companies that are resistant to a recession, ie utilities
companies whose earnings fluctuate with the business cycle
Common stock of large well established companies w/great financial strength
48
The ability of an asset to be quickly and easily converted into cash
Money Market Conversion
Liquidity
Interest captial
Certificate of deposit
49
What is NOT a step listed on, "How other reach their savings goals"?
They have a money mentor
They monitor their progress from start to finish
They liquidate their assets whenever possible
Break down their goals into small amts over period of time
50
People investing their money have two
main
considerations. What are they?
Securities and Mutual Funds
Risk and Return
Time and Value
Stocks and Bonds
51
When a bank pays you for having money in your savings account this is called ______________ .
Money Deposit
Discretionary Income
Interest
Withdrawal Revenue
52
Blue chip stocks
Common stocks
Cheap stocks
Mostly tech companies
Well-known, and well-established companies on the stock market
53
An investment in the ownership of a corporation, usually represented by shares.
Dividends
Stocks
Bonds
Commodities
54
A stock whose owner has voting rights...
Capital Stock
Common Stock
Load Stock
Preferred Stock
55
The U.S. stock market that works with Technology companies
NASDAQ
NYSE
AMEX
AUSTMKT
56
A share of stock is a unit of ownership in a corporation
False
True
