Assessment 4 - Budgeting to Financial Statements - 8/29/24

Which of the following is a loan an investor makes to an organization in exchange for interest payments over a specified term plus the repayment of principal at the bond's maturity date?

• 401K

• Stock

• Annuity

• Bond

Which of the following regulates money market funds?

• FDIC

• FBI

• SEC

• PBS

Which of the following is a risk management technique which spreads assets into a portfolio with a wide variety of investments?

• Investment

• Diversification

• Appreciation

• Compounding

Which of the following is an employer-sponsored retirement savings plan?

• 401K plan

• Savings account

• Money market fund

• Annuity

Which of the following is interest calculated on the initial principal and the accumulated interest of previous periods?

• Fixed interest

• Simple interest

• Compound interest

• Variable interest

Which of the following describes the degree to which an asset can be quickly bought in the market without affecting the asset's price?

• Cash flow

• Liquidity

• Value

• Interest

Which of the following is made up of a pool of funds collected from many investors to invest in securities?

• Annuity

• Mutual fund

• Bond

• Stock

Which of the following describes a portion of ownership in a corporation?

• Real estate

• Bond

• Mutual fund

• Stock

Which of the following is a type of mutual fund which invests only in low-risk securities?

• 401K plan

• Certificate of deposit

• High-yield bank account

• Money market fund

Which of the following is a contract between an investor and an insurance company in which the company promises to make periodic payments to the investor?

• Certificate of deposit

• Annuity

• High-yield bank account

• Money market fund