WorksheetsChapter 19 Savings & Investing Strategies
Total questions: 42
Worksheet time: 21mins
Investing means using your savings to earn more money
True
False
The more frequently interest is compounded, the slower the growth in savings.
True
False
If a stock increases in value and is then sold for more than its original cost, a capital gain results.
True
False
Usually, higher risk investments pay higher yields than lower risk investments.
True
False
Before a corporation can pay bondholders the rate of interest promised to them, it must first pay dividends to stockholders.
True
False
Investors who do their own research can save money by using a full-service broker.
True
False
Stocks of smaller companies are usually not traded on a stock exchange.
True
False
Most corporate bonds are issues for $10,000.
True
False
Land and anything attached to it is called real estate.
True
False
An investment with an unusually high risk is called a speculative investment.
True
False
Financial planning experts encourage people to deposit _____ of their income into a savings account or other investment each month.
1 percent
5 percent
10 percent
25 percent
The money you receive for letting others use your money is called ________________
security
interest
collateral
premiums
Money market accounts
pay interest based on various government and corporate securities.
generally require long-term deposits.
usually pay much less than a regular savings account, but are far more secure.
rarely have a large minimum balance requirement.
Which of the following is NOT a commodity?
grain
livestock
gold
real estate
Tasha's main investment concern is that the money she has invested will be returned to her. She is MOST concerned with
taxes
safety
liquidity
return
This type of mutual fund invests in both stocks and bonds.
income fund
balanced fund
sector fund
aggressive-growth fund
Interest is paid to a bondholder based on the bond's
maturity value and stated interest rate
stated interest rate
maturity date and maturity value
annual percentage yield and maturity date
Mortgage payments are
almost always lower than rent payments
generally do not include property taxes and insurance
commonly paid on a weekly basis
usually long-term loans
Janine needs someone to estimate the value of some property for her. She should probably hire a(n)
real estate agent
appraiser
home inspector
real estate attorney
The difference between the price at which you could currently sell your house and the amount owed on the mortgage is called
appreciation
the assessed value
equity
liquidity
The Dow Jones Industrial Average is commonly reported
rate of return
stock index
stated interest rate
net asset value
The current price quoted for precious metals in the world market is called the
yield
discount rate
face value
spot price
The storage of money for future use is called
saving
compound
mutual
yield
___________ interest is computed on the amount saved plus the interest previously earned.
saving
compound
mutual
yield
The ______________ is the percentage of your money earned on your savings or investment over a year.
saving
compound
mutual
yield
In a(n) ______________________ fund, money from many investors is used to invest in a variety of companies, allowing investors to spread out their risk among many investors.
saving
compound
mutual
yield
The ease with which an investment can be changed into cash without loosing its value is called _________________
liquidity
dividends
commission
value
Cash payments a business makes to stockholders are called _________________________
liquidity
dividends
commission
value
For their services, stockbrokers charge a fee called a(n) _________________________
liquidity
dividends
commission
value
The market ________________of a stock is the price at which a share of stock can be bought and cold in the stock market.
liquidity
dividends
commission
value
A _______________ is a certificate representing a promise to pay a definite amount of money at a stated interest rate on a specified due date.
bond
face
income
mortgage
Each bond has a(n) _______________ value, also called the maturity date.
bond
face
income
mortgage
A type of mutual fund called a(n) _________________ fund specializes in stocks that pay regular dividends.
bond
face
income
mortgage
A(n)_____________ is a legal document giving a lender a claim against property if the principal, interest, or both are not paid as agreed.
bond
face
income
mortgage
The amount that your local government determines your property is worth for tax purposes is called the ______________ value
bond
assessed
income
contract
An agreement to buy or sell an amount of commodity at a specified price in the future is a future _______________________
bond
assessed
income
contract
A _____________________ is a licensed specialist in the buying and selling of stocks and bonds.
Stock Broker
Real Estate Agent
Loan Officer
Market Analysis
A ______________________ provides information about securities you may want to buy.
Real Estate Agent
Full-Service Broker
Discount Broker
Loan Agent
A __________________ simply places orders and offers limited research in different stocks.
Real Estate Agent
Full-Service Broker
Discount Broker
Loan Agent
Tax Benefits, Increased Equity and Pride of Ownership are three benefits of
investing
selling
home ownership
renting
Mortgages where the interest rates are set for the term of the loan are called _____________________________
adjustable-rate mortgages (ARM)
lower rates
appraisal fees
fixed-rate mortgages
Mortgages where the interest rate is raised or lowered from time to time depending on the current interest rates are called ______________________
adjustable-rate mortgages (ARM)
lower rates
appraisal fees
fixed-rate mortgages
