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Chapter 12 Review Flashcards | StudBud
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Chapter 12 Review
Chapter 12 Review
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This Quiz will review the learning objectives and material in Chapter 12.
Flashcards
16 cards
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Practice quiz
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Questions
16
Answers
1
The S&P 500 is one example of a(n) . . .
401(k).
stock market index.
portfolio.
fixed annuity.
2
Owning ______ means you own a small piece (or pieces) of a company.
estate planning
None of the above
stock
qualified retirement savings plans
3
A fund manager uses a(n) _____ to outline an investing strategy.
portfolio
prospectus
will
qualified retirement savings plan
4
Which of these investment accounts will provide tax-free withdrawals at retirement?
457
401(k)
403(b)
Roth IRA
5
Which of the following is not considered a true retirement plan?
IRA
SIP
401(k)
403(b)
6
______ refers to the monetary gain or loss of an investment over time.
IRA
ROI
IRO
ROY
7
Preparing a will is just one aspect of effective . . .
retirement planning.
investing.
portfolio.
estate planning.
8
For a majority of millionaires, where did their money for retirement come from?
Real estate
IRA/401(k)
Inheritance
Social Security
9
An extended time of falling stock values is referred to as a(n) . . .
stock market.
risk-return ratio.
bear market.
bull market.
10
Capitalization (cap) refers to the total value of a company described in one of these three ways:
short-term, medium-term, and long-term.
None of the above
small, medium, and large.
small-cap, mid-cap, and large-cap.
11
A(n) ______ is a payout of net profits from a company to shareholders.
dividend
return on investment (ROI)
capitalization
liquid asset
12
Your collection of investments is called your . . .
portfolio.
estate planning.
401(k).
diversification.
13
Cash in a bank savings account is a good example of a(n) . . .
liquid asset.
dividend.
fixed annuity.
investing.
14
Giving your money, time, or property to an organization that helps other people who are in need is called ______ giving.
Organizational
Charitable
Legacy
Financial
15
When it comes to picking investments, the higher the ______, the greater your chance of losing money.
Return
Interest rate
Risk
Index
16
When it comes to investing, one of the most important things to remember is, never invest . . .
in something you don't understand.
in a new 401(k).
in stocks you are familiar with.
in both stock and bonds.