WorksheetsArmy JROTC Investing intro
Total questions: 20
Worksheet time: 24mins
Which of the following is NOT a stock index?
DOW JONES
S & P 500
NASDAQ COMPOSITE
P/E RATIO
A type of investment that invests in a lot of different companies is called
Stocks
Bonds
Mutual funds
T-bills
What is a stock?
A loan an investor makes to a company or government that pays interest over time.
A share of ownership in a company
A collection of investments sold as a package.
An option to purchase something in the future at todays price.
What is the primary reason for a company to issue stock?
The stocks help investors earn a higher rate of return
To raise money to grow the company
To distribute the risk of bankruptcy across more investors
To increase greater awareness of the company
All of the following are ways to earn money as a stockholder EXCEPT:
getting dividends
selling the stock at a higher value
stock splits
selling the stock at a lower value
Dow-Jones Industrial Average is made up of how many stocks
25
30
50
100
Spreading your investments around to inrease financial security
Risk assessment
Diversification
Stocks, bonds & cash
Liquidity trap
Professionally managed, diversified investment that pools resources of many investors
Treasury bonds
Stock index
Mutual fund
Saving account
Ownership in a publicly traded corporation
CD-certificate of deposit
Money Market
Treasury bill
Stock
The number of years it takes for your money to double
72 Rules
Rule of 72
If you bought a stock at $20 a share and now it's worth $40 a share how much do you make per share if you sell all your stock now?
$10
$40
$20
-$20
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
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
When I use my money to try to make more money, I am...
Saving
Investing
wishful thinking
Budgeting
How can investors receive compounding returns?
By selecting a savings account that has a higher interest rate
By investing their earnings back into their original investment
By transferring their earnings into a high-risk investment
By diversifying their investment portfolio
Which type of account will your employer often "match" your contributions?
Traditional IRA
401K
Roth IRA
Pension
What is investing?
A short-term commitment to meet unexpected shortfalls. Helps meet short-term goals.
A long-term approach to watch your money grow. Helps you meet long-term goals.
