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WorksheetsPersonal Finance - Investment Review
Total questions: 50
Worksheet time: 38mins
Name
Class
Date
1.
Examples of stock exchanges are NASDAQ and NYSE
a)
True
b)
False
2.
When you purchase stock, you are an owner.
a)
True
b)
False
3.
A market order is when you buy or sell stock at the best current price.
a)
True
b)
False
4.
A ROTH IRA is taxed when you take money out.
a)
True
b)
False
5.
The age to withdraw from your IRA without penalty is 65 1/2.
a)
True
b)
False
6.
The SEC regulates the securities exchange industry.
a)
True
b)
False
7.
Deferred load and back load are the same thing.
a)
True
b)
False
8.
Municipal bonds are not tax free.
a)
True
b)
False
9.
The DOW Jones consists of 30 companies and is an index that giving an overall picture of how the market is doing for the day.
a)
True
b)
False
10.
A mutual funds value is determined by the market price.
a)
True
b)
False
11.
Diversification is not a main advantage of a mutual fund.
a)
True
b)
False
12.
An example of a loan to the government is a US savings bond.
a)
True
b)
False
13.
Contributions to this retirement account are made after taxes
a)
Non Roth
b)
Roth
14.
Spreading your investments around to inrease financial security
a)
Risk assessment
b)
Diversification
c)
Stocks, bonds & cash
d)
Liquidity trap
15.
This picture describes markets that have been......
a)
Doing well
b)
Doing poorly
c)
Not changing
16.
Professionally managed, diversified investment that pools resources of many investors
a)
Treasury bonds
b)
Stock index
c)
Mutual fund
d)
Saving account
17.
Retirement investment taken out after taxes (net income) but withdrawn w/o tax after age 59.5
a)
Traditional IRA
b)
Municipal Bond
c)
403(b)
d)
Roth IRA
18.
Debt investment in which investor loans money to an entity, usually corporate or governmental
a)
Bond
b)
Stock
c)
Cash
d)
Annuity
19.
Ownership in a publicly traded corporation
a)
CD-certificate of deposit
b)
Money Market
c)
Treasury bill
d)
Stock
20.
World's largest stock exchange founded in 1790.
a)
NASDAQ
b)
AMEX
c)
NYSE
d)
EuroNext
21.
What is happening if stocks are in a "bear market"?
a)
Going up
b)
Going down
c)
Staying even
d)
Inflation
22.
Rule of 72. How many years to double my money if I get a 9% return on investment?
a)
8 years
b)
7.2 year
c)
7 years
d)
9 years
23.
Which of the following is the reason why you invest your money?
a)
Save for retirement
b)
Save for college
c)
Save for a big purchase
d)
All of the above
24.
Investing in Stocks are considered high risk.
a)
True
b)
False
25.
_______ is interest paid on interest previously earned.
a)
emergency fund
b)
interest account
c)
growing interest
d)
compound interest
26.
A list of your investments is your_______.
a)
book
b)
folder
c)
portfolio
27.
The most common relationship between risk and return in investing can be stated as:
a)
higher risk indicates lower return
b)
higher risk indicates higher return
c)
lower risk indicates higher return
d)
No relationship exists between risk and return
28.
Elliot’s stock broker is suggesting that he consider investing in a diversified portfolio. A diversified portfolio is desirable because it:
a)
increases the risk/return ratio
b)
limits investors choices to only one or two investment tools
c)
indicates an investor is a good predictor of the return an investment will have
d)
decreases risk by investing money in a variety of investment tools
29.
Conner wants to purchase stocks with the money he received from his tax return. Who would he contact to make the transaction?
a)
A brokerage firm
b)
The New York Stock Exchange
c)
a real estate agent
d)
Conner should complete this transaction on his own
30.
This pools individual's money to buy a range of financial assets
a)
Mutual Fund
b)
Money Market Accounts
c)
Secondary Market
d)
Diversification
31.
How many companies are part of the Dow Jones?
a)
30
b)
100
c)
500
d)
50
32.
What is an IPO?
a)
when a company first sells stock to the public
b)
a new Apple product
c)
when the government creates shares on the stock exchange
d)
when the company's shareholders have a meeting
33.
What does a stock represent?
a)
a loan you make to a company
b)
a percentage of ownership of a company
c)
a contract for a company's goods and services
d)
stocks are just tools used to make money
34.
What is an advantage of buying a mutual fund versus a stock?
a)
a mutual fund will always give higher returns
b)
a mutual fund is less risky
c)
a mutual fund is less diversified
d)
there are no advantages
35.
What is a bond?
a)
a share of ownership in a company
b)
lending money to a company for a fixed interest payment
c)
a building on wall street
d)
an investment that cannot be traded
36.
The biggest advantage you (high school student) have right now when investing is . . .
a)
You have a lot of money
b)
You live at home
c)
You have a lot of time
d)
You don't own a house
37.
How do you "pay yourself first"?
a)
Write a check
b)
Put money in savings before paying bills
c)
Invest money each paycheck
d)
Be sure bills are paid
38.
IRA stands for
a)
Intentional Rate Adjustment
b)
Interest Rate Adjustment
c)
Individual Rate Adjustment
d)
Individual Retirement Account
39.
With virtually all investments, as the risk goes up, so does the potential return.
a)
True
b)
False
40.
You can start investing with a small amount of money ?
a)
True
b)
False
41.
What interest rate would be necessary to double a $100 investment in 18 years?
a)
2
b)
3
c)
4
d)
5
42.
This is the idea that you don't want to have "All your eggs in one basket."
a)
spreading risk
b)
Easter agenda
c)
safe investing
d)
diversification
43.
The Rule of 72 is used to find how long an it will take for
a)
investments to double
b)
debt to double
c)
interest to increase
d)
Investment to triple
44.
Since 1926, the stocks of large companies have produced an average annual return of nearly ___ percent.
a)
5
b)
10
c)
25
d)
50
45.
The two major stock exchanges are
a)
NASDAQ & NYSE
b)
Dow Jones Industrial Average & S&P 500
c)
NYSE & American
d)
NASDAQ & DJIA
46.
The portion of a company's profits that are paid to its shareholders is
a)
dividends
b)
equity
c)
blue chip
d)
liquidity
47.
The S&P 500 is a stock exchange in Chicago of 500 random companies.
a)
True
b)
False
48.
A bear market is
a)
When the market is doing good
b)
When the market is doing bad
c)
When the market is going steady
d)
When the market is rapidly unchanging
49.
A bull market is
a)
When the market is doing bad
b)
When the market is going steady
c)
When the market is doing good
d)
When the market is rapidly unchanging
50.
National Association of Securities Dealers Automated Quotations, or NASDAQ,
a)
uses the same trading system as the NYSE.
b)
uses a computer automated system for trading
c)
uses ebay to help make the trades
d)
uses stockbrokers in conjunction with the Dow to make trades
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