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Finance_All topics by today

Total questions: 20

Worksheet time: 12mins

Name
Class
Date
1.

The amount of money a person expects to have in the future is called

a)

Principal

b)

Simple Interest

c)

Future Value

d)

Present Value

2.

Earning interest on interest is called...

a)

Extra Interest

b)

Simple Interest

c)

Inflation Interest

d)

Compound Interest

3.

The idea that money to be paid out or received in the future is not equivalent to money paid out or received today

a)

SMART Money

b)

Time Value of Money

c)

PV/FV Money

d)

Compound Money

4.

The steady rise in the general level of prices is known as...

a)

Time Value of Money

b)

Interest

c)

Principal

d)

Inflation

5.

Future value is calculated as...

a)

FV= PV / (PV * Interest rate)

b)

FV = PV + (PV * Interest rate)

c)

FV = PV - PV / Interest rate

d)

FV = PV * (PV*Interest rate)

6.

The interest rate is...

a)

Future value of the money

b)

The present value of the money

c)

Compensation for the length of using money

d)

The principal of the money

7.

The future value with compound interest for more than two periods is calculated as...

a)

FV = PV(1 + i)n

b)

FV = PV(1 + i) 2

c)

FV = PV / (1+i)2

d)

FV = PV / (1 + i) 2

8.

The income on an investment...

a)

Interest rate

b)

Future value

c)

Inflation

d)

A Return

9.

Institutions such as banks that collect funds from savers that can be loaned to borrowers are known as

a)

financial intermediaries

b)

financial assets

c)

Credit Unions

d)

dividends

10.

The network of savers, investors, financial institutions, and financial assets is known as the

a)

stockbroker

b)

equities market

c)

Credit Union

d)

financial system

11.

Funds that collect and invest income until payments are made to eligible (retired) people are known as

a)

mutual funds

b)

pension funds

c)

bear markets

d)

bull markets

12.

The technique of spreading funds over a large number of investments to reduce the portfolio's overall risk is known as

a)

diversification

b)

mutual funds

c)

bear markets

d)

pension plans

13.

A person who buys or sells equities for his or her clients is a

a)

Insurance agent

b)

financial advisor

c)

stockbroker

d)

accountant

14.

True or False: Stock values change daily.

a)

true

b)

false

15.

Companies that sell shares of a portfolio of securities are known as

a)

pension plans

b)

mutual funds

c)

discount brokerage firms

d)

bear markets

16.

The physical place where buyers and sellers meet to trade stocks is known as the

a)

brokerage desk

b)

stock or securities exchange

c)

trading floor

d)

equities trader

17.

A capital market is ideal when:

a)

Financial institutions are sufficiently developed

b)

Capital is most productively allocated

c)

Finance is available at a reasonable cost

d)

All of these

18.

_______ a market in which all financial assets can be sold to someone other than the original issuer

a)

primary market

b)

secondary market

c)

financial system

d)

capital market

19.

Banks provide which of the following EXCEPT

a)

debit cards

b)

loans

c)

check writing services

d)

government subsidies

20.

_________ is agreement or contract between investor (lender) and a debtor (borrower), typically a business firm or government body

a)

Bond

b)

Common stocks

c)

Preferred stocks

d)

Option