EPF Module 4 Test Review

To calculate the future value of money, you need to know the amount of money you have now, the number of periods, and the __________________

• inflation rate

• interest rate per period

• interest rate per period

• consumer confidence ratio

You earn $1,300 working at a summer job. You decide to put it into an account and leave it there for four years while you are in college. The principal will earn 1.5% simple interest. How much will you have in your account at the end of four years?

(a)  

Once individuals can claim the contributions they make as well as those made by their employer, they are said to be __________ in the plan. This usually requires working for an employer for a specified period of time.

• attached

• associated

• vested

• connected

The savings option that has a low return but is very liquid given that it is easy to convert to cash is a

• Certificate of deposit

• savings account

• bond

• portfolio

f the investor can deduct the amount of the contribution from their taxable income they are investing in a ___________________ IRA account.

• traditional

• roth

• general purpose

• none

For anyone born in 1960 or later, the full retirement age when they can collect Social Security benefits is

(a)  

A share of ownership in a company is known as a

(a)  

The collection of all the different types of investments that belong to an individual is a(n) _____.

• initial public offering

• stock market

• investment portfolio

• bond fund

Corporations selling stock for the first time are offering ____________________

• dividends

• price to earnings ratio P/E

• initial public offerings (IPO)

• Secondary Market Access

An individual can begin collecting Social Security benefits at age 62; however,

• their payments will stop after 10 years

• their spouse will not be eligible to receive any Social Security benefits

• their income tax rates increase substantially

• their payments will be lower than if they wait until their full retirement age