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B285 CLS 3: Savings & Investing Flashcards | StudBud
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B285 CLS 3: Savings & Investing
B285 CLS 3: Savings & Investing
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Unit test review
Flashcards
29 cards
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Questions
29
Answers
1
Share in ownership of a company
Stock
Money Market Account
CD
Bond
2
Largest and oldest stock exchange?
E-Bay
New York Stock Exchange (NYSE)
NASDAQ
Amazon
3
Interest earned on the original principal and on previously earned interest is called?
Compound Interest
Simple Interest
Annual Percentage Rate
Annual Percentage Yield
4
Where are stocks and other securities bought and sold?
On the Streets
Costco
Stock Exchange
Nowhere
5
Bonds and loans are a form of __________ financing. Where government or corporations borrow money.
Saving is not important
credit
equity
debt
6
If you bought a stock at $10 per share and sold it for $15 per share, the difference is called?
Beta
Dividend
Capital Loss
Capital Gain
7
Higher risk has the potential for?
None of These
Lower Return
Steady Return
Higher Return
8
A 401K and IRA are both considered this type of savings option.
Stock
Money Market Account
Mutual Fund
Retirement Account
9
If you bought a stock at $50 per share and sold it for $30 per share, the difference is called?
Beta
Capital Gain
Dividend
Captial Loss
10
Form of debt financing where gov. or corp. borrow money and pay it back with interest.
CD
Stock
Mutual Fund
Bond
11
What is less risky?
Bond
Stock
12
Stocks are a form of __________ financing. Where government or corporations borrow money.
debt
debit
credit
equity
13
The very first sale of stock issued by a company to the public on the NYSE or NASDAQ.
401K
IPO
Stock
IRA
14
This savings option has the possibility of having matched contributions by employers.
401K
Bonds
CD
Savings Account
15
Time value of money states…
You should not save at all
It is better to save money now rather than later
Saving is not important
It is better to save money later rather than now
16
FDIC and NCUSIF insure depositors up to ____________?
$2500000
$250,000
$25,000
$200,000
17
Low risk =?
None of These
Low Return
High Return
No Return
18
Savings option that lock in money for a period of time in return for a fixed interest rate.
Savings Account
Stock
Certificate of Deposit (CD)
529 Savings Plan
19
Stock market can provide a greater return on your investment and has lower risk.
False
True
20
T/F. Mutual funds allow investors to invest in a variety of stocks and bonds.
True
False
21
Which investment option is considered to be the riskiest?
Bonds
Savings Account
CDs
Stocks
22
Interest earned on only the original principal is called?
This Does Not Happen
Simple interest
Compound interest
Principal interest
23
A professionally managed portfolio of stocks, bonds, funds, or other investments.
Stock
Money Market Account
CD
Mutual Fund
24
An investor that invests among a variety of investment options is engaging in concept known as?
Liquidity
Diversification
Risk
Compound Interest
25
A benefit to a mutual fund is…
Liquidity
It Is Safe
Diversification
Fees
26
Considered to be the safest savings option but pays very low interest rate.
Savings Account
Money Market Account
Stocks
Mutual Fund
27
How many stitches are on a baseball
509
216
102
335
28
Which of the following measures how quickly an investment can be turned into cash?
Liquidity
Yield
Diversification
P/E Ratio
29
What was James B Conant's middle name
Bogdan
Benjamin
Benedict
Bryant