Mod 6

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

• interest rate per period

• inflation rate

• unemployment rate

• consumer confidence ratio

What is the major disadvantage of having a regular savings account?

• Not having enough growth potential

• Having a minimum amount of money deposited to keep it open

• Not being able to access money for a specified amount of time

• Having an expiration date

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?

• $1,378

• $1,200

• $1,410

The chance you take of making or losing money on your investment is known as ________.

• risk

• reward

• recession

• income

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

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

• their payments will stop after 10 years

• their income tax rates increase substantially

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

If 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 of these

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.

• vested

• attached

• associated

• connected

Corporations selling stock for the first time are offering _______________.

• initial public offerings (IPO)

• Secondary Market Access (SMA)

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

• investment portfolio

• initial public offering

• stock market

• bond fund

You have $2,000 to invest at 1.5% interest. The rule of 72 predicts it will be doubled in [this] years.

• 48

• 27.8

• 108

• 72