WorksheetsInvesting
Total questions: 15
Worksheet time: 14mins
What are two purposes for investing? (select two)
growing wealth
avoiding taxes
saving for emergencies
saving for long-term goals
When should you begin investing so that you can take advantage of compound interest?
as early as possible
when your career is established
after making over $100,000
around age 50
Which term describes how easily you can access the money you have invested?
Liquidity
Opportunity Cost
Inflation
Diversification
Which term describes how unpredictable and risky an investment might be?
Liquidity
Opportunity Cost
Volatility
Diversification
An investment in real estate that will be very difficult to sell can be described as _____.
not liquid
very liquid
The phrase "don't put all your eggs in one basket" is used to illustrate the importance of _____.
stock options
debt repayments
high-risk investments
diversifying investments
If Jim invests $500 into stocks that he sells for $1,200, what was the return on his investment?
$500
$700
$1,200
$1,900
An investment in the partial ownership of a company is called a _____.
Stock
Bond
Mutual Fund
Money Market
An investment into a professionally managed account with many types of investments owned by several shareholders is called a ______.
Stock
Bond
Mutual Fund
Money Market
Which of the following investments tends to be the most volatile and risky but offers the possibility of high rates of return?
Stock
Bond
Mutual Fund
Money Market
When does a person actually gain or lose money on an equity investment?
when he pays taxes
when he purchases the investment
when it appreciates or depreciates
when he sells the investment
The money made from selling an equity investment is called _____.
commission
liquidity
capital gains
bond
Which type of retirement account is set up for workers by their employers who may match a certain percentage of their contributions?
401(k)
IRA
Mutual fund
Flexible Savings Account
Which type of IRA requires you to pay taxes when making contributions to the account, but then allows you to withdraw money tax-free at retirement?
Traditional IRA
Roth IRA
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