Personal Finance Review

Front

Who contributes to 401K’s?

Back

employees and employers

Front

Risk

Back

the potential for loss

Front

What happens if you withdraw money from your retirement account early?

Back

Amount withdrawn will be taxed at your current income tax rate & you may pay a penalty.

Front

What is the best type of investment for someone nearing retirement? Options: stocks, mutual funds, bonds, real estate

Back

bonds

Front

Who contributes to IRA’s?

Back

individuals only

Front

How can you earn more money from a bank despite low interest rates? Options: an interest-bearing checking account, a savings account, a CD (certificate of deposit), skip the bank & put the money under the mattress.

Back

a CD (certificate of deposit)

Front

When is the best time to start planning for your retirement?

Back

as early as possible & by your early 20s

Front

Which of these investments carries the most risk?

• savings account
• Bonds
• stocks
• Certificates of Deposit (CDs)

Back

stocks

Front

Who owns a commercial bank?

Back

stock holders

Front

A lender's requirement to guarantee repayment of a loan is referred to as

Back

collateral