WorksheetsPersonal Finance and Econ Review (#4)
Total questions: 20
Worksheet time: 10mins
This is another way stockholders can make money off stocks as a distribution of profit.
Sell off stock
Principle
Buy stock
Dividend
Which of the following are good reasons to buy a stock index fund that invests in the S&P 500?
It is diversified, has low fees and will "beat" the market
It is not diversified, has high fees and will "beat" the market
It is diversified, has low fees and historically has performed better than most mutual funds investing in big companies
It has high fees, is diversified and historically has performed better than most mutual funds investing in big companies
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
A diversified portfolio is desirable because
It limits investment choice
It's a good predictor on rate of return
It increases risk and return
It decreases risk
Why is it important to start investing as soon as possible?
You take less risk when you are young, so money will be safe
You have more time for your money to compound
Investing is an easy way to make quick money
Fees on investments are cheaper when you are younger
Uma's renters insurance policy has a premium of $15/month, a deductible of $1000, and a personal property coverage limit of $40,000. Her apartment is burglarized and $5,600 of possessions are stolen or destroyed. How much will Uma pay in order to replace her stuff?
$15
$15/month for as many months as it takes her to pay back off the $5600 (approx 370 months)
$1000
$5600
The amount you must pay on a claim before the insurance company will pay.
Premium
Policy
Loss
Deductible
A formal request made by the insurance policyholder to the insurance company for payment or services covered by the insurance policy.
Claim
Accident
Premium
Coverage
A contract of insurance
Policy
Premium
Deductible
Claim
A payment made monthly, twice a year, or yearly, for an insurance policy.
Premium
Copay
Tax
Benefit
