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Investing Review

Total questions: 15

Worksheet time: 7mins

Name
Class
Date
1.

1. A tax deferred retirement investment fund for employees of for profit companies.

a)

401(k)

b)

403b

c)

457

d)

402(a)

2.
Spreading your investments around to inrease financial security
a)
Risk assessment
b)
Diversification
c)
Stocks, bonds & cash
d)
Liquidity trap
3.
Professionally managed, diversified investment that pools resources of many investors
a)
Treasury bonds
b)
Stock index
c)
Mutual fund
d)
Saving account
4.
Debt investment in which investor loans money to an entity, usually corporate or governmental
a)
Bond
b)
Stock
c)
Cash
d)
Annuity
5.
As you get older your investments should get . . .
a)
more speculative
b)
more conservative
c)
more risky
d)
age does not matter
6.

The RULE OF 72 is used in calculating the...

a)

interest an investor needs to reach a goal.

b)

age of money.

c)

time or interest needed to double an investment.

d)

fluctuations of the stock market.

7.

The ability to turn an asset into cash is called...

a)

Liquidity

b)

Criteria

c)

A Risk Factor

d)

Asset Management

8.

Short term investments where your money is locked in for a pre-determined amount of time is a...

a)

Stock

b)

Bond

c)

Certificate of Deposit

d)

Treasury Note

9.

Market in which prices are rising and you should buy on a margin.

a)

Primary Market

b)

Secondary Market

c)

Bear Market

d)

Bull Market

10.

Market in which prices are falling and you should short sell.

a)

Primary Market

b)

Secondary Market

c)

Bear Market

d)

Bull Market

11.
What is inflation?
a)
The general rise in prices
b)
The uncertainty the return on an investment will deviate from what is expected
c)
The number of times something happens to money
d)
The projected value of an ivestment at the end of a specified time frame
12.

Which of the following is the least liquid investment option?

a)

Savings Account

b)

Stock

c)

Money Market Account

d)

Real Estate

13.

You get an immediate tax break when you invest in a(n)...

a)

Traditional IRA

b)

Roth IRA

c)

Savings Account

d)

Stock

14.

Roth IRAs are a good option for young people because your investment will grow over the years tax free and is tax free when you withdrawal

a)

True

b)

False

15.

An Investment Portfolio Includes-

a)

Bonds

b)

Stocks

c)

Other Securities

d)

All of the Above