Flashcardizz Economics Final Exam Prep #2

Front

A market characterized by optimism is a(n) _____

Back

Bull market

Front

The P/E ratio compares ____.

Back

Price to Earnings

Front

A market characterized by pessimism is a(n) ____.

Back

Bear market

Front

A person may give ____ to one person per year without paying the federal gift tax

Back

$13,000

Front

A person who manages money/property in a will for another is called a ____.

Back

Trustee

Front

Interest computed on the original principal plus accumulated interest is ____.

Back

Compound interest

Front

The chance that an investment’s value will decrease is known as ____________.

Back

Risk

Front

Which of the following is an example of a low risk/low return investment? a. Treasury Bond, b. CD (Certificate of Deposit), c. Savings Bond, d. All of the above

Back

All of the above

Front

Spreading the risk among many types of investments is known as ____________ .

Back

Diversification

Front

Which of the following is an advantage of a mutual fund? Options: a. Guaranteed return, b. Convertible into treasury bills, c. Comes in many colors, d. Professionally managed

Back

Professionally managed