Question 1

Bond

Accepted Answer

A certificate representing a promise to pay a definite amount of money at a stated interest rate on a specified due date.

Question 2

Capital Gain

Accepted Answer

The result of a stock increasing in value and then being sold for more than its original cost

Question 3

Collectibles

Accepted Answer

Items of personal interest to collectors that can increase in value of the future

Question 4

Commodities

Accepted Answer

Grain, livestock, and precious metals

Question 5

Common Stock

Accepted Answer

Stock that represents general ownership in a corporation and a right to share in its profits

Question 6

Compound Interest

Accepted Answer

Interest computed on the amount saved plus the interest previously earned

Question 7

Dividends

Accepted Answer

Payments of profits in cash to stockholders

Question 8

Futures contract

Accepted Answer

Agreement to buy or sell an amount of a commodity at a specified price in the future

Question 9

Interest

Accepted Answer

The money you receive for letting others use your money

Question 10

Investing

Accepted Answer

Using your savings to earn more money

Question 11

Liquidity

Accepted Answer

The ease with which an investment can be changed into cash without losing its value

Question 12

Market Value

Accepted Answer

The price at which a share of stock can be bought and sold in the stock market

Question 13

Maturity Value

Accepted Answer

The amount payable to an investor at the end of a holding period

Question 14

Mortgage

Accepted Answer

A legal document giving the lender a claim against a property if the principal, interest, or both are not paid as agreed

Question 15

Municipal bonds

Accepted Answer

Bonds issued by local and state governments

Question 16

Mutual fund

Accepted Answer

An investment fund set up and managed by companies that receive money from many investors

Question 17

Preferred stock

Accepted Answer

Stock that has priority in the payment of dividends

Question 18

Real Estate

Accepted Answer

Land and anything that is attached to it

Question 19

Saving

Accepted Answer

The storage of money for future use

Question 20

Stock Exchange

Accepted Answer

A business organization that accommodates the buying and selling of securities

Question 21

A sector fund is a type of mutual fund that

Accepted Answer

specializes in stocks of companies that are all of the same industry

Answer

invests in both stocks and bonds

Answer

invests in stocks of companies from around the world

Answer

specializes in stocks that pay regular dividends

Question 22

Which of the following is the most liquid?

Accepted Answer

Savings account

Answer

Stock investment

Answer

Baseball card collection

Answer

Real estate

Question 23

All of the following are costs of home ownership except

Accepted Answer

appreciation

Answer

property insurance

Answer

upkeep

Answer

real estate (property) taxes

Question 24

Which of these investments are the most risky?

Accepted Answer

commodities

Answer

municipal bonds

Answer

growth stocks

Answer

US treasury bonds

Question 25

Financial planning experts encourage people to deposit _______ percent of their income into a savings account or other investment each month.

Accepted Answer

10

Answer

20

Answer

15

Answer

5

Question 26

Municipal bonds have advantages over corporate bonds in that

Accepted Answer

interest earned on municipal bonds is usually tax-exempt

Answer

interest rates on municipal bonds are generally higher

Answer

municipal bonds can be sold at any time

Answer

all of these choices

Question 27

A type of mortgage that usually carries a low initial rate but that may go up or down over time is a(n)

Accepted Answer

ARM

Answer

FRM

Answer

AIM

Answer

FIRM

Question 28

What are 4 factors to consider when choosing investments?

Accepted Answer

Safety & Risk, Potential Return, Liquidity, Taxes

Question 29

What are 4 economic factors affecting stock prices?

Accepted Answer

Inflation, Interest Rates, Consumer Spending, Employment

Related quizzes

Related quizzes