Economics: Personal Finance

What are the 5 classifications of stocks?

• Blue Chip, Income, Growth, Cyclical, Defensive

• Income, Growth, Penny, Defensive, Mutual funds

• Red Chip, Income, Growth, Cyclical, Technological

• Preferred, Defensive, Common, Dividends, Defensive

What is the penalty if you withdraw money from your retirement account early?

• you will have to repay it

• the money you withdraw will be taxed as income at whatever your current tax rate is

• you lose eligibility for that account

• the IRS garnishes your wages

Who contributes to IRA’s?

• employees and employers

• employees/individuals only

• employers and the government

• employers only

• What's an IRA?

One way to earn more interest from a bank is to

• take out a loan  

• buy a certificate of deposit (CD)

• buy stock in the bank

• start a savings account

When should you start planning for retirement?

• As soon as you turn 25

• The sooner, the better; NOW would be best

• in your 30s

• in your 40s

Which of these financial options involves the most risk?

• savings account

• stocks

• mutual funds

• bonds

Which of these financial options involves the lowest risk & is the better investment for people nearing retirement age?

• bonds

• stocks

• mutual funds

• gambling in Vegas

Who owns commercial banks?

• the government

• depositors

• stockholders

• the bank employees

What is a guarantee of repayment required by lenders?

• deductible 

• down payment

• warrantee

• collateral

How many credit cards should the average person have?

• as many as they want

• 0-2

• 10

• 5-8