NEW
Font size
WorksheetsSaving and Investing
Total questions: 15
Worksheet time: 8mins
Which of the following is a good reason to have a financial reserve that's larger than normal?
You would not be able to find another job quickly if you lost yours.
You have a large monthly car payment.
You have mostly discretionary expenses.
Your income is fairly predictable.
What is compounding interest?
interest that's not calculated on a regular basis
interest that doubles the principal of an account
interest gained only on the principal of an account
interest that's added to the principal of an account
What is opportunity cost?
the principal in an investment account
the total amount of investments in a portfolio
the value of an investment opportunity you pass up in order to take another investment opportunity
the value of an investment opportunity when it's compared with all the other investments you've made in the past
What is a volatile investment?
an investment that can change quickly without warning
an investment that is fairly low risk
an investment that requires a high volume of investors
an investment that gains value slowly over time
Which portion would not be part of an investment portfolio?
a savings account
commodities fund
a savings 529 plan
equity investments in a company
When is your risk tolerance lowest?
when you are closest to needing the money you invested
when you are concerned about the diversity of your investment portfolio
when you are an inexperienced investor
when you first make the investment
What piece of information is most helpful when you're comparing investments?
the ROI percentage
the ROI dollar amounts
the total return dollar amounts
the initial investment amounts
How does an equity investor make money?
depositing money in compounding accounts
lending money and charging interest
selling an investment for more than they paid for it
selling many investments at the same time
What is a stock?
a partial ownership in a company
a group of real estate investments
a regular payment a company issues to investors
a government investment
Which policy is a way the SEC protects investors?
guaranteeing the value of certain stocks
insuring the amounts of people's investments
requiring companies to disclose financial information
helping investors diversify their portfolios
Which example is an investment commodity?
a rare painting
shares in a company
microfinancing
steel
Which option allows you to pool your money and invest in a portfolio with other investors?
a 401(k) plan
a 529 plan
an IRA account
a mutual fund
Which piece of information is typically included in a stock listing?
the number of shares of stock sold in a previous day
the predicted price of the stock over the next year
the company's SEC registration credentials
the number of shares of stock sold in the previous year
Which type of investment income happens when an investor sells ownership in an equity investment that's gained value?
dividends
capital gains
interest
equity gains
What is the New York Stock Exchange?
an indicator of how certain stocks may perform in the future
the world's largest exchange for trading stocks and other securities
a stock market where trades take place exclusively over computers
an index for measuring the performance of stocks
