NGPF Investing 1 Vocab Quiz

What is a bond?

• A type of ownership in a company

• A loan to a company or government that pays interest over time

• A collection of multiple investments

• A savings account with tax benefits

What is a municipal bond?

• A bond issued by a corporation

• A bond issued by local or state governments for public projects

• A financial contract between banks

• A high-risk stock investment

• Which account allows investors to trade stocks, bonds, and other assets?

• • Brokerage Account

• • Budgeting App

• Savings Acount

• • Pension Fund

• The yearly interest paid on a bond, expressed as a percentage, is called:

• • Stock Yield

• • Capital Return

• • ETF Growth

• • Coupon Rate

• Profit made from selling an asset for more than its purchase price is called:

• • Interest Earnings

• • Capital Gains

• • Passive Return

• • Dividend Payment

• Allocating investments among stocks, bonds, and cash to diversify risk is known as:

• • Active Trading

• • Dollar-Cost Averaging

• • Fixed-Income Strategy

• • Asset Allocation

• Spreading investments across various assets to reduce risk is called:

• • Insider Trading

• • Bond Repayment

• • Diversification

• • Short Selling

• What is the tax applied to profits made from selling an asset for more than its purchase price?

• • Interest Tax

• • Property Tax

• • Payroll Tax

• • Capital Gains Tax

Tags

CCSS.7.RP.A.3

• What type of account helps individuals save for retirement with potential tax advantages?

• • Brokerage Account

• • Traditional IRA

• • Checking Account

• • Credit Account

• Trading stocks based on confidential, non-public information. It refers to the illegal practice of buying or selling a company's stock based on confidential, non-public information about the company

• • Market Speculation

• • Dividend Investing

• • Insider Trading

• • Compound Returns