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Money Management Review/Yes or No (32?) Flashcards | StudBud
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Money Management Review/Yes or No (32?)
Money Management Review/Yes or No (32?)
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1st 32 questions of review
Flashcards
32 cards
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Questions
32
Answers
1
The rule of 72 lets you know how long it will take your money to triple if you know the interest rate.
Yes
No
2
The purpose of a company issuing stock is to give the public a chance to own stock.
No
Yes
3
The lower the person’s debt ratio, the better off they are financially.
Yes
No
4
A tenant is responsible for maintenance of rental property.
No
Yes
5
A payment made by a company to its shareholders is called interest.
No
Yes
6
The interest earned from a municipal bond is often tax exempt?
No
Yes
7
When it comes to investing, the greater the risk the greater the reward.
No
Yes
8
Are corporate bonds guaranteed by the federal government?
No
All of the above
Yes
9
The Dow Jones Industrial Index is a stock market index based on 1000 of the largest companies in the world.
No
Yes
10
A shareholder of common stock has the right to receive interest payments.
No
Yes
11
Buying a treasury bond or bill (T-bill) is best for investors who are looking for a secure, low risk investment.
No
Yes
12
Stock are considered a riskier investment than bonds, yes or no?
maybe
I don't know
No
Yes
13
Credit unions usually pay the highest rate of interest on savings account balances
No
Maybe
Yes
14
Municipal bonds are a tax to raise money for city operations.
Yes
No
15
A stockbroker is anyone who is an investor in a company.
Yes
No
16
Investors select “blue chip” stocks because they are listed on the American Stock Exchange.
No
Yes
17
Diversification is important in investing.
Yes
No
Maybe
18
Mutual funds are managed by the investor.
No
Yes
19
An investment instrument that invests money in a group of stocks, bonds or other securities is called a mutual fund.
N0
Yes
20
A dividend is the gain from the sale of a persons shares of stock.
No
Yes
21
Diversification is best described by putting all of your investments in TWO financial instruments.
Yes
No
22
Long term fixed rate borrowers benefit most from inflation.
No
Yes
23
Mutual funds are registered with the Securities and Exchange commission (SEC).
Yes
No
24
An oil corp tanker spilled oil in the ocean. As a result, the share price of this stock is likely to increase?
No
Yes
25
When John bought a Microsoft bond, he was borrowing money from Microsoft.
Yes
No
26
The largest equities (stock) market in the world is the American Stock Exchange (AMEX).
No
Yes
27
Jennie owns Disney shares and can't attend the annual stockholder meeting. She can't vote unless she is at the meeting.
Yes
No
28
If you increase your down payment you will decrease the amount of the mortgage you need from the bank.
Did we even talk about this?
No
Yes
29
A mutual fund is a stock that is mutually beneficial.
No
Yes
30
Yes or no, a bond is a share of ownership in a local government.
No
Yes
31
The interest earned on United States Series EE Savings Bonds is exempt from state and local taxes.
No
Yes
32
Sara has invested in corporate bonds which are loans to the issuer of the bond.
Yes
No
