Unit 10 Virtual Friday 3/26

Why is compound interest more beneficial than simple interest? (hint: choose 2 correct answers)

• Your money grows faster when it is compounded

• You earn interest on your interest

• Fees for compound interest are greater than simple interest

• Compound interest is hard to calculate, so fewer use it

Which would be considered the highest risk investment type?

• Stock

• Mutual Fund

• Bond

• Money Market Account

The relationship between risk and return can be stated as

• Higher risk indicates higher return

• Higher risk indicates lower return

• Lower risk indicates higher return

• No relationship exists between risk and return

Which is NOT a stock market index?

• New York Stock Exchange

• Dow Jones Industrial Average

• S&P 500

• Nasdaq

How can you make money on stocks? (hint: choose 2 correct answers)

• A capital gain

• Interest

• Dividends

• Holding the stock at least 3 years

If interest rates rise, what will typically happen to bond prices?

• Rise

• Fall

• Stay the same

The face value of a bond is called

• Principal

• Coupon

• Par Value

• Maturity Date

Which is not one of the companies that rates bond?

• S&P

• Experian

• Moody's

• Fitch

Andy earned $300 on a $1000 investment. What is his current ROI (return on investment)?

• 2%

• 3%

• 30%

• 70%

Which is true about Initial Public Offerings (IPOs)? (hint: choose 3 correct answers)

• IPOs occur when a private company becomes publicly traded

• All companies file an IPO

• The value of an IPO can be difficult to measure

• When an IPO occurs, a company raises money to grow the business