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WorksheetsEPF18 - Terms
Total questions: 11
Worksheet time: 6mins
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 when saving
Investing has a guaranteed return, saving does not
Saving is for emergency and goals, investing is long-term wealth
Which would be considered the highest risk investment type?
Stock
Mutual fund
Bond
Money Market fund
The relationship between risk and return can be best expressed as:
Higher risk indicates lower return
Higher risk indicates higher return
Lower risk indicates higher return
No relationship exists between risk and return
Which is NOT a stock market index
NYSE
Dow Jones
S&P 500
Andy earned $300 on his $1000 investment. What is his ROI? (return on investment)
2%
3%
30%
40%
Which of the following is considered a loan to a company?
Stock
Option
Bond
Mutual fund
Why is it so important to understand how the stock market works?
The stock market always makes money
Because no one understands bonds
The stock market averages 8 to 9% return a year
Your savings account is too risky
What is the difference between a 401k and an IRA (Individual Retirement Account)
I can always add money to my 401k
The 401k is company-sponsored
The government matches money that I put into my IRA
One is for retirement, the other is for speculation
Which security represents ownership in a company
bond
mutual fund
stock
option
Diversification means _______.
Putting all your eggs in one basket
Spreading your money out among different kinds of investments
How much money you make on your portfolio
Someone who helps you make decisions on what to invest in
According to the Charles Schwab Risk Tolerance article, someone who has a high tolerance for risk and a long time horizon should invest ___________.
conservatively
moderately
aggressively
speculatively
