Part IV Review Game

Front

A period in which stock prices fall for many months is known as

Back

a bear market.

Front

The employee is thinking like an entrepreneur in which of the following situations? An hourly employee goes to work and performs only the required tasks. A cashier rings up the total purchase price of the goods in the customer’s cart. A staff member brings a plan to the supervisor which describes how to reduce costs and attract new customers. An employee attends a monthly staff meeting on company policies and procedures.

Back

A staff member brings a plan to the supervisor which describes how to reduce costs and attract new customers.

Front

When you pay for items that are consumed immediately or wear out quickly by placing them on your credit card, your wealth

Back

decreases.

Front

A prudent person is most likely to find the use of financing attractive when purchasing which one of the following items? entertainment, clothes, rental housing, a college education

Back

a college education

Front

You borrow $1500 at 15% interest for 2 years. How much interest would you pay?

Back

$450

Front

Historically, which of the following has had the highest average annual rate of return? corporate bonds, money market mutual funds, corporate stocks, U.S. Treasury bonds

Back

corporate stocks

Front

A diversified portfolio is comprised of

Back

a broad range of various types of assets.

Front

The law of comparative advantage explains why individuals as well as countries can benefit from specializing in the activities they do best.

Back

individuals as well as countries can benefit from specializing in the activities they do best.

Front

An indexed equity mutual fund

Back

merely holds stocks in the same proportion as they exist in a broad stock market index like the Standard & Poor's 500.

Front

Funds paid into a 401k or traditional IRA will

Back

reduce your current tax liability, but the retirement withdrawals from the account will be taxable.