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PFL Investing For Retirement Review (Unit 5)

Total questions: 23

Worksheet time: 11mins

Name
Class
Date
1.

Income from investing.

a)

Capital Gain

b)

Return

c)

Annuity

d)

Risk

2.

A unit of ownership of a company that entitles the stockholder to voting privileges

a)

Risk

b)

Mutual Fund

c)

Preferred Stock

d)

Common Stock

3.

The profit from the sale of assets such as stocks, bonds, or real estate.

a)

Capital Loss

b)

Capital Gain

c)

Return

d)

Yield

4.

Spreading your assets among several different types of investments

a)

Will

b)

Risk

c)

Diversification

d)

Allocation

5.

Market condition that occurs when investors are optimistic about the economy and buy stocks

a)

Limit Order

b)

Bear Market

c)

Bull Market

d)

Market Order

6.

The sale of an investment for less than its purchase price

a)

Capital Loss

b)

Risk

c)

Net Worth

d)

Diversification

7.

A request to buy a stock at the current market value

a)

Short Sell

b)

Market Order

c)

Limit Order

d)

Short Cover

8.

Market condition that occurs when investors are pessimistic about the economy and sell stocks

a)

Bear Market

b)

Bonds

c)

Bull Market

d)

Short Sell

9.

Investment where investors pool their money to buy stock, bond, and other securities

a)

Bond

b)

Common Stock

c)

Diversification

d)

Mutual Fund

10.

The potential for loss.

a)

Capital Loss

b)

Return

c)

Capital Gain

d)

Risk

11.

A package of protection that provides benefits to retirees, survivors and disabled persons

a)

Social Security

b)

Medicare

c)

Insurance

d)

Welfare

12.

Employee sponsored retirement savings plan funded by a portion of your salary

a)

Social Security

b)

Mutual Fund

c)

401K

d)

Annuity

13.

A special account - a person saves a portion of income for retirement. Not employer sponsored.

a)

Mutual Fund

b)

IRA

c)

401K

d)

Social Security

14.

Person who is willing and able to perform the tasks involved in carrying out a will

a)

Estate Planning

b)

Executor

c)

Beneficiary

d)

Stockholder

15.

A legal document in which you state if you want to be kept alive by artificial means

a)

Living Will

b)

Will

c)

Medicare

d)

Beneficiary

16.

The salary reduction plan for an employee at a tax-exempt institution is called a

a)

401K

b)

403B

c)

IRA

d)

Roth IRA

17.

The legal procedure of proving that a will is valid or invalid

a)

Probate

b)

Small Claims

c)

Will

d)

Beneficiary

18.

A legal declaration of a person’s wishes regarding disposal of his or her estate after death

a)

Living Will

b)

Beneficiary

c)

Probate

d)

Will

19.

A detailed plan for managing personal assets to make the most of them while you are alive /dead

a)

Estate Planning

b)

Probate

c)

IRA

d)

Will

20.

A person who is named to receive a portion of someone’s estate

a)

Will

b)

Beneficiary

c)

IRA

d)

Lawyer

21.

Discloses information about a company's earnings, assets, and liabilities.

a)

Stock Research Sheet

b)

Prospectus

c)

Wall Street Journal

d)

Common Stock

22.

T/F, the amount of one share of a mutual fund is called the net asset value.

a)

True

b)

False

23.

Type of company that would most likely reinvest their profits than give out a dividend

a)

Growth

b)

Mature

c)

Reinvester

d)

Harvester