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Chapter 10/11: Saving & Investing Flashcards | StudBud
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Chapter 10/11: Saving & Investing
Chapter 10/11: Saving & Investing
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Questions
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Answers
1
Purchased partial ownership in a company
Bond
Mutual fund
Stocks
2
Investment planing starts with
Choosing a least 2 different investments
Evaluating risk and return
deciding how much money is needed
Establishing goals
3
Interest rate risk happens when
Interest rates lock you in
Interest rates fluctuate
Interest rates are very low
Interest rates are very high
4
The written pledge of a government to repay a specific sum of money with interest
Stocks
Emergency Fund
Government Bond
5
A SMART goal is one that is specific, measurable, attainable, realistic, and timely
False
True
6
Your investments can grow or decline based on the nature of
Your bank account
The market
Your location
The Internet
7
You should monitor your investments frequently
False
True
8
Business failure risk the the potential to lose money when a business loses money
False
True
9
is considered a high-risk investment that might earn a large profit in a short amount of time
Speculative ivnestment
Stocks
Bonds
10
You should NOT include monthly savings into your budgeted expenses.
True
False
11
Your emergency fund should have enough money to pay for:
1 year of living expenses
1 week of living expenses
6 months of living expenses
2 months of living expenses
12
The process of spreading your assets among several different types of investment to reduce risk
Safety
Diversification
Financial Planner
13
NYSE is one of the largest securities exchange in the world
False
True
14
Penny Stocks
Typically sell for about $100
Typically sell for under $1
Typically sell for over $25
15
Global investment can be risky because of
Exchange rates
An inability to check your investments
Unknown markets
Both 1 and 2 are correct
16
Types of financial planners include
Commission-only
Fee-only
fee-and-commission
All of the above
17
When you cannot be certain about the profit of your investment
Speculative Investment
Risk
Safety
18
Reliable sources of information on investments include
School publications
Friends and family
The internet & newspapers
19
A savings account that you can access quickly to pay for unexpected expenses
Risk
Stocks
Mutual fund
Emergency Fund
20
A specialist who is trained to offer financial help/advice
Broker
Financial planner
Corporate bond
21
Two main factors in getting a financial planner are
Interest and wealth
laziness and compatibility
Experience and knowledge
Income and willingness to make financial decisions
22
You should cut back to basic expenses a few months a year
False
True
23
Inflation risk
Increase the value of your money
Effects everyone and causes your money to lose value
Only effects those who take out loans
Effects only a small group of people
24
An investment in which investors pool their money to buy stocks, bonds, and other securities
Mutual Fund
Stocks
Bonds
25
Real Estate is NOT a type of investment
False
True
