WorksheetsChapter 11 Review
Total questions: 33
Worksheet time: 17mins
You will always make money when investing.
True
False
You will have to pay a penalty when taking money out of a savings account
true
false
Which type of mutual funds invests in stocks and bonds and seeks to provide steady and reliable dividends?
global funds
growth funds
income funds
balanced funds
Which type of mutual fund invests in short-term securities that go up and down with the current interest rate and economy?
new venture funds
money market funds
stock funds
index funds
When rental income exceeds the cost ownership, the owner is...
none of the above
depreciation
negative cash flow
positive cash flow
Which of the following types of bonds can be bought for half the face value?
I bonds
Treasury notes
EE bonds
all of the above
All of the following are true about investment clubs except
they consist of groups of people who pool their money together
they can take part in direct investing and indirect investing
they often have slated goals and buy investments to reach those goals
they make only low-risk investments
Which of the following types of bonds allows the issuer to repay the bond early (before the maturity date) at a set amount
convertible bond
zero coupon bond
junk bond
callable bond
Which of the following retirement plan is tax-deferred plan for employees of nonprofit organizations?
401 (K) plan
pension plan
spousal plan
403 (B) plan
Which of the following retirement plan is tax-deferred plan in which employers (for profit) sometimes match a portion of employee contributions?
403 (B) plan
pension plan
401 (K) plan spousal plan
A Roth IRA
cannot provide tax-free earnings
requires that you withdraw your money at age 70 1/2
does not allow you to make pre-tax contributions
all of the above
Speculative-grade bonds are also known as
junk bonds
corporate bonds
municipal bonds
investment bonds
A corporate bond is redeemed for its
coupon rate
coupon rate less interest earned
discount rate
face value
Which of the following investments is the most illiquid
CD
brokerage account
real estate
money market fund
Which of the following types of bonds can be exchanged for shares of common stock?
collable bonds
zero coupon bonds
junk bonds
convertible bonds
Which of the following is medium risk?
US savings bond
CD
mutual fund
checking account
Starting a business or buying a business are the only two ways to invest in business ownership
true
false
Which of the following types of investments is a form of indirect investments?
individual stocks
US savings bonds
savings account
mutual funds
Which of the following investment options typically has the highest risk?
bonds
mutual funds
savings accounts
individual stocks
Which of the following types of investment is a form of direct investing?
mutual funds
individual stocks
business ventures
real estates investment trusts
If you redeem a CD early
you may lose part of the interest you earned
you cannot be charged an early withdraw penalty
you pay no penalty
All of the above
A future contract transfers ownership of a commodity at a later date
true
false
Common stock less risky investment that preferred stock or bonds
true
false
A retirement account becomes portable when itis vested and can be rolled over to another account
true
false
There is no limit to the amount an employee can contribute to a 401 (K) plan
true
false
Deposits to a SEP account are taxed at the time they are made
true
false
Some corporate bonds pay interest semiannually at the coupon rate.
true
false
Series EE US savings bonds are subject to federal income tax unless they are used to finance education.
true
false
A money market deposit account at a bank is a high-risk investment because it is not insured
true
false
A typical CD is not a liquid investment because you must pay a penalty if you withdraw the money before the stated time.
true
false
Most savings accounts are safe because they are insured by the FDIC
true
false
Savings accounts typically have early withdraw penalties
true
false
What insures a Credit Union
NBUA
NCUS
NCUA
CNUA
