Module 7 Review
Quiz by Suzanne Roberts
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20 questions
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- Q1When someone invests in a variety of places to reduce the overall risk of investing.Asset allocationAsset distributionSpeculative investmentsBond indenture30s
- Q2________ have fixed maturity dates (such as 20 years), at which time the borrower promises to repay the bondholder in full.Mutual fundsSavings accountsStocksBonds30s
- Q3A legal document that outlines all of the conditions of a bond.Bond agreementBond instructionsBond indenture30s
- Q4The process of earning interest on interest that you've already earned.StackingCompoundingMultiplying30s
- Q5Agreements by a company to pay specific amounts of money at the maturity dates.Municipal bondsGovernment bondsCorporate bondsTreasury bonds30s
- Q6Purchased directly from the company, although these plans may only be offered to employees or other stock owners.Treasury notesPreferred stocksTreasury Inflation-Protected SecuritiesDirect stock plans30s
- Q7The periodic distribution of profits to investors.T-billsTreasury notesDividendsStocks30s
- Q8A relatively risk-free bond written by a municipality with the agreement to repay the amount of the bond plus interest on a particular maturity date.Preferred stocksGovernment bondsSpeculative investmentsCorporate bonds30s
- Q9The act of using money to purchase some asset in the hopes of generating more money.CompoundingSavingInvesting30s
- Q10Debt securities that are issued by state or local governments to pay for ongoing products such as roads, schools, and airports.Treasury bondsGovernment bondsMunicipal bondsCorporate bonds30s
- Q11Work by taking investors' money, investing that collective money in stocks, bonds, and other investments, and managing this portfolio for the investors.Mutual fundsDirect stock plansTreasury bondsTreasury notes30s
- Q12Share characteristics with both common stocks and corporate bonds.Common stocksPreferred stocks30s
- Q13The act of accumulating money.CompoundingSavingInvesting30s
- Q14An account that earns interest on the money deposited, but which cannot be directly accessed for money (such as by writing a check).Mutual fundsBondsSavings accountTreasury Inflation-Protected Securities30s
- Q15High-risk investments with the possibility of high returns in a short period of time.Speculative investmentsSavings accountT-billsTreasury notes30s