Investment Terms Quizs

Traditional 401(k) Plan

• A retirement savings plan that allows individuals to save for retirement while paying taxes on contributions.

• A type of savings account that offers high interest rates for short-term savings.

• A retirement savings plan, sponsored through your employer, that allows an individual to save for retirement while deferring taxes until funds are withdrawn.

• A government-mandated pension plan for all employees.

Bear Market

• A market in which prices are rising, encouraging buying.

• A market in which prices are falling, encouraging selling.

• A market that is stable with no significant price changes.

• A market characterized by high volatility and uncertainty.

Coupon

• The annual interest payment on a bond, usually expressed as a percentage of its face value.

• A discount offered on the purchase of goods or services.

• A type of bond that does not pay interest until maturity.

• A financial instrument that represents ownership in a company.

Insider Trading

• The legal act of trading a company's stock using public information.

• The illegal act of trading a company's stock using information that is not available to the public.

• The practice of buying stocks based on market trends and analysis.

• The act of trading stocks in a foreign market.

Exchange-Traded Fund (ETF)

• A collection of stocks and/or bonds that are traded on securities exchanges.

• A type of mutual fund that can only be traded at the end of the trading day.

• A fixed-income investment that guarantees returns over a specified period.

• A type of investment that can only be purchased through a broker.

Dividend

• Money from the profits of a company that is paid out to its shareholders, typically on a quarterly basis.

• A type of investment that guarantees a fixed return.

• A fee charged by brokers for executing trades.

• The total earnings of a company before expenses.

Traditional IRA

• A type of savings account for children

• An individual retirement account that allows a person to set aside pre-tax income up to a specified amount each year.

• A government-sponsored retirement plan for employees

• A type of investment account for stocks and bonds

Micro-Investing Platform

• An application that allows users to regularly save small sums of money.

• A platform for trading large amounts of stocks.

• A service that provides financial advice for high-net-worth individuals.

• A tool for managing cryptocurrency investments.

Inflation

• The rate at which the price of goods increases and consumer purchasing power decreases over time.

• A decrease in the overall price level of goods and services.

• The measure of how much the value of money increases over time.

• A situation where the economy is growing at a rapid pace.

Robo-Advisor

• A type of robot used in manufacturing.

• An online wealth management service that provides automated, algorithm-based portfolio management advice.

• A financial advisor who meets clients in person.

• A software that tracks personal expenses.