Investing/Retirement Quiz1

Which of the following is NOT a common type of investment?

• Stocks

• Real Estate

• Bonds

• Credit Cards

What is the stock market?

• A physical market where goods are exchanged

• A market only for government bonds

• A place for buying and selling shares of public companies

• A type of supermarket

What is the difference between taxable (T), tax-deferred (TD), and tax-free (TF)?

• T=taxed yearly, TD=never taxed, TF=taxed at purchase

• T=not taxed, TD=taxed at withdrawal, TF=not subject to tax

• T=taxed at purchase, TD=taxed yearly, TF=not subject to tax

• T=taxed at purchase, TD=not taxed until withdrawal, TF=not subject to tax

I only need to invest for retirement purposes.

• True

• False

What does the word 'invest' mean?

• Spending money impulsively over a long time

• Saving money in platforms to increase wealth

• Borrowing money from others and repaying with interest

• Donating money to charity

Tags

CCSS.L.11-12.6

CCSS.L.9-10.6

CCSS.W.11-12.2D

CCSS.W.8.2D

CCSS.W.9-10.2D

What is a pension?

• College savings plan

• Health insurance plan

• Short-term loan with high interest rates given by employer

• Retirement account usually sponsored by an employer

When should a person start saving for retirement: Choose the best answer.

• When you start your first job that offers a retirement savings plan

• Begin as soon as you can

• Begin at age 35

• Begin at age 40

What does 'IRA' stand for?

• Individual Reward Account

• International Retirement Alliance

• Investment Reserve Agreement

• Individual Retirement Account

How is a bond different from a stock?

• Bond- loan you give an organization; stock-partial ownership in a company

• Bonds -riskier than stocks but have the potential to earn higher returns

• Bonds- smaller startup companies; stocks - well-establish organizations

• Bonds earn high returns while stocks provide a stable source of income

What is a real asset?

• An asset that can be touched and felt

• An asset that is imaginary

• An asset that is easily traded

• An asset that generates no income