Intro to Finance FINAL EXAM

What does it mean to "thwart"?

• accountants are trying to help you understand

• accountants are confusing people by telling lies

• your bank account is frozen and you can't unlock it

• accountants are confusing people by giving the same word different names

What is an index?

• a measure of a group of securities are performing

• a book filled with Pokemon and their moves

• a document with your spending records

• a list of names and places

What word describes the collection of stocks, bonds, and other securities you own?

What is an investment vehicle?

• a word you use to describe cars that carry stocks

• a van they use to transfer shares to super rich people when they make a major trade

• a vehicle made as a company car for an investment firm

• a general term for any type of security you use as a tool for investment

What is the basic unit of value the drives the economy?

(Hint: What is the currency of the economy?)

What is the theory of investing?

• When you invest in an operation, you lose money over time.

• When you invest in yourself, you get money back to spend.

• When you invest in an operation, you will get more money back over time.

• When you invest in anything, you won't lose money.

Which option describes the largest factor affecting your retirement money; the time you allow your investments to grow?

• perspective

• cash flow

• education

• compounding

What is the key building block to any retirement or investment?

• how much your children make

• how many stocks you own

• how much your time is worth

• what job you get when you're an adult

Why is education one of the most important investments you can make?

• it determines your wage, which affects your future money

• it doesn't affect my future investments at all

• it determines what job you get so you don't go broke

• it doesn't help you with future investments at all; it only puts you in more debt

Why do people not like to pay rent?

• Rent is cheap.

• People get absolutely nothing for it.

• Landlords are hard to talk to.

• It takes too long to save for rent.