WorksheetsInvestment Basics
Total questions: 10
Worksheet time: 5mins
The "rate of return" is
The rate of how long you have to hold an investment
The rate that you have to pay to buy an investment
The percentage of increase or decrease expressed by percentage of the investment's cost
The interest rate earned
A long term investment vehicle often issued by insurance companies that guarantee a base rate of return while guaranteeing the principal:
Mutual Fund
Stock
Fixed Annuity
Cryptocurrency
A single share of ownership of a legally formed company is called a:
Bond
Mutual Fund
Annuity
Stock
True or False: An IRA or 401K can be invested in several different kinds of investments
True
False
The best chance of a gain in a portfolio is:
a diversified approach over an extended period of time
luck
trading as Warren Buffet does
investing in the same way that your parents/grandparent did
An investment is:
A contract between you and your bank for a checking account
The outlay of funds for income or profit
Only something that can be done through your 401K
never a risk
The chart used to show the value of a $1 through various investments and timeframes is called:
Skittles Chart
Venn Diagram
Investment/Inflation Chart
The Ibbotson Chart
True or False: It is appropriate for someone who is contributing funds close to their retirement age to invest aggressively.
True
False
A 529 is an investment vehicle that helps save for education for children. These accounts are generally invested in:
Bonds
Annuities
Mutual Funds
Single Stocks
Before investing any funds, it is strongly advised that there is approximately ______-_______ months living expenses in a liquid account.
6-9 months
3-6 months
1-3 months
2-3 months
