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Investment & Retirement

Total questions: 17

Worksheet time: 9mins

Name
Class
Date
1.

The issuer of a bond is:

a)

the lender

b)

the borrower

c)

a stock security

d)

a quality bond rating

2.

Bond prices move at an inverse relationship to:

a)

interest rates

b)

the maturity date

c)

the bond issuer

d)

the economy

3.

One unappealing aspect of bonds for investors is:

a)

the bond rating

b)

the risk of default

c)

the maturity date

d)

the secondary market

4.

A type of security that represents equity ownership in a company, and includes voting rights, is called:

a)

common stock

b)

a government bond

c)

preferred stock

d)

a zero-coupon bond

5.

Companies sell common stock to investors to raise money in order to:

a)

pay interest

b)

pay dividends

c)

issue shares

d)

fund its operations

6.

The NYSE and Nasdaq are examples of:

a)

maturity dates

b)

bond ratings

c)

bond portfolios

d)

stock exchanges

7.

When a company earns a profit a decides to distribute some of the profits to stockholders, they are paying:

a)

interest

b)

a dividend

c)

a coupon

d)

a par value

8.

Which investment is generally considered to be more volatile and risky?

a)

bonds

b)

preferred stock

c)

CD

d)

common stock

9.

Darrell wanted to start investing money monthly but wanted to manage his risk by investing in many assets, versus just one. Darrell's investment strategy includes:

a)

diversification

b)

a prospectus

c)

an online broker

d)

research

10.

A professionally managed pool of investments including stocks and bonds and other assets is called:

a)

a mutual fund

b)

a government bond

c)

a treasury bond

d)

an online brokerage account

11.

A 401(k) is also called:

a)

a pension plan

b)

a defined benefit plan

c)

social security

d)

a defined contribution plan

12.

A pension plan is also called:

a)

a defined contribution plan

b)

a defined benefit plan

c)

social security

d)

a 401(k) plan

13.

Creating a plan for retirement to meet desired future income goals, and allocating and investing the financial resources necessary to achieve the plan is called:

a)

retirement planning

b)

asset allocation

c)

a defined benefit plan

d)

vesting

14.

What type of retirement plan will some employers contribute matching funds towards?

a)

a pension plan

b)

a deferred compensation plan

c)

a 401(k) plan

d)

a bonus plan

15.

A source of income provided by the federal government when you retire, primarily based on your total earnings throughout your career and your age when you start receiving benefit payments, is called:

a)

social security

b)

retirement planning

c)

a 401(k)

d)

asset allocation

16.

What is a vesting period?

a)

the period of time it takes for shares in an employer retirement plan to be owned fully by the employee

b)

the period of time you have been investing for

c)

the period of time you hold a stock before selling it

d)

the period of time it takes a brokerage firm to complete a trade

17.

Interest-bearing securities, also called fixed-income securities, where the investor is the lender, and the borrower is usually a corporation or government, are called:

a)

bonds

b)

stocks

c)

coupon

d)

equity