Financial Terms and Definitions

What is Real Estate?

• Property consisting of land and the buildings on it

• A type of stock market investment

• A form of digital currency

• A type of insurance policy

What does owning Individual Stock mean?

• It means having ownership in a specific company's shares.

• It means owning a mutual fund.

• It means having a diversified portfolio.

• It means investing in real estate.

What is a Mutual Fund?

• A type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities

• A type of savings account with a fixed interest rate

• A government bond issued to raise funds for public projects

• A type of insurance policy for protecting assets

What is a Savings Account?

• A type of bank account that allows you to deposit money, keep it safe, and withdraw funds, all while earning interest.

• A type of account used for trading stocks and bonds.

• A type of account used for taking loans from the bank.

• A type of account used for business transactions.

What is a Roth IRA?

• A type of retirement savings account that allows your money to grow tax-free

• A type of savings account for medical expenses

• A type of investment account for buying stocks

• A type of account for saving for a child's education

What is a Life Insurance Plan?

• A contract between an individual and an insurance company

• A type of savings account

• A government bond

• A health insurance policy

What is a Government Bond?

• A debt security issued by a government to support government spending

• A type of stock representing ownership in a company

• A certificate of deposit issued by a bank

• A form of insurance policy

What is a Blue Chip Stock?

• A well-established company with a history of reliable performance

• A new startup company with high growth potential

• A company that only operates in the technology sector

• A company that is at risk of bankruptcy

A Traditional IRA is a type of retirement savings account that offers tax advantages. Which of the following is a characteristic of a Traditional IRA?

• Contributions are tax-deductible

• Withdrawals are tax-free

• It is only available to self-employed individuals

• It requires mandatory annual contributions

What is a Certificate of Deposit (CD)?

• A type of savings account with a fixed interest rate and fixed date of withdrawal

• A type of loan offered by banks

• A credit card with no annual fee

• A checking account with no minimum balance