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WorksheetsInvesting
Total questions: 21
Worksheet time: 11mins
A key difference between saving and investing is
Saving is for everyone, investing is for the wealthy
Your money is insured when investing, it is not in savings
Investing has a guaranteed return, savings does not
Saving is for emergencies & goals, investing is for long-term wealth
Why is compound interest more beneficial than simple interest? (TWO ANSWERS)
Your money grows faster when it is compounded
You earn interest on your interest
Fees for compound interest are greater than simple interest
Compound interest is hard to calculate, so fewer use it
Which would be considered the highest risk investment type?
Stock
Mutual Fund
Bond
Money Market Account
The relationship between risk and return can be stated as
Higher risk indicates higher return
Higher risk indicates lower return
Lower risk indicates higher return
No relationship exists between risk and return
Which is NOT a stock market index?
New York Stock Exchange
Dow Jones Industrial Average
S&P 500
Nasdaq
How can you make money on stocks? (TWO ANSWERS)
A capital gain
Interest
Dividends
Holding the stock at least 3 years
The face value of a bond is called
Principal
Coupon
Par Value
Maturity Date
Which is NOT true about Initial Public Offerings (IPOs)?
IPOs occur when a private company becomes publicly traded
All companies file an IPO
The value of an IPO can be difficult to measure
When an IPO occurs, a company raises money to grow the business
Investment vehicle sold by LIFE INSURANCE COMPANIES; receive a payout of the contributed money as a defined benefit over time.
Bond
Roth IRA
401(k)
Annuity
Professionally managed, DIVERSIFIED investment that POOLS resources of MANY INVESTORS
Treasury bonds
Stock index
Mutual fund
Saving account
