Money Management Review

Which of these is the riskiest type of investment?

• Municipal Bond

• Federal Bond

• Blue Chip Stock

If you put money into a saving's account,

• you are lending money to the bank.

• the bank is lending money to you

• you will be wealthy when you retire

• you are taking on financial risk

If you buy on margin, you are buying with borrowed money

• True

• False

When corporations or governments need to borrow large amounts of money, they often issue

• Stocks

• Bonds

• Mutual Funds

All investments offered by brokerage firms are insured by the federal government.

• True

• False

You buy 100 shares of Target stock at $25 a share. You then sell those shares for $28 a share. What is the total amount of money that you gained or lost.

• $3

• $100

• $300

• $1,000

A profit made from the sale of a financial asset such as stock or a bond

• Profit

• Dividend

• Capital gains

• Margin

This is used when the government wants the economy to expand.

• Coupon Rate

• Reserve Requirement

• Loose Monetary Policy

• Tight Monetary Policy

_______ stockholders usually get shareholder voting rights

• Preferred

• Common

• Municipal

• Corporate

When a company distributes its earnings to its shareholders:

• Capital Gains

• Profit

• Dividends

• Bonds