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Investing- Dave Ramsey

Total questions: 24

Worksheet time: 12mins

Name
Class
Date
1.

What is the 5th foundation?

a)

build wealth and give

b)

pay cash for a car

c)

pay cash for college

d)

save for retirement

2.

A security that represents part ownership of a company

a)

bond

b)

stock

c)

CD

d)

Annuity

3.

When you are investing in a mutual fund, you are contributing to a pool of money that will be..

a)

given to hundreds of charities in your area

b)

invested in a mix of stocks and bonds

c)

taxed based on each individual investor's annual salary

d)

put into a separate savings account for your children to inherit

4.

diversification reduces your ________

a)

income

b)

retirement funds

c)

risk

d)

mutual funds

5.

_______ is the process of figuring out how much money you will need in retirement and creating a plan to get there

a)

investment banking

b)

outrageous generosity

c)

retirement planning

d)

retirement accounting

6.

investing your money earns you more money because of

a)

checking accounts

b)

mortgage payments

c)

compound growth

d)

short-term savings

7.

Roth IRA, 401(k), 403(b), 457 and SEP are all examples of

a)

tax forms

b)

mutual funds

c)

retirement plans

d)

investment bankers

8.

CD and money market accounts are both examples of investments with _______ risk and ______ returns

a)

low; low

b)

low; high

c)

high; high

d)

high; low

9.

mutual funds are less risky and can outperform the stock market because...

a)

they are not diversified

b)

they guarantee a high rate of return

c)

they are fully liquid

d)

they invest in several companies at once

10.

the three components of compound growth are money, time and _______

a)

a large paycheck

b)

retirement

c)

investments

d)

rate of return

11.

never invest your money in _______ because they are very risky.

a)

CDs

b)

mutual funds

c)

single stocks

d)

real estate

12.

______ is the key when it comes to compound growth.

a)

time

b)

money

c)

attitude

d)

Roth IRA

13.

usually the more liquid an asset, the less return you can expect.

a)

True

b)

False

14.

when using a Roth IRA, you invest your money after paying taxes so the investment grows tax-free.

a)

True

b)

False

15.

a legal document listing how a person wants their assets distributed after their death

a)

will

b)

portfolio

c)

diversification

d)

beneficiary

16.

a distribution of net profits of a company to its shareholders

a)

investing

b)

stock

c)

dividend

d)

liquid asset

17.

the practice of dividing the money a person invests among different types of investments in order to lower risk

a)

portfolio

b)

diversification

c)

stock market

d)

multual fund

18.

a retirement savings plan offered by an employer to its employees who contribute money from their gross pay

a)

IRA

b)

Roth IRA

c)

mutual fund

d)

401(k)

19.

a financial market that trades shares of ownership of public companies

a)

IRA

b)

mutual fund

c)

liquid asset

d)

stock market

20.

measuring the gain or loss on an investment relative to the amount of money invested

a)

investing

b)

return on investment

c)

liquid asset

d)

portfolio

21.

refers to the monetary gain or loss of an investment over time

a)

ROY

b)

IRA

c)

IRO

d)

ROI

22.

Dave says long term investments need to be at least ___ years

a)

7

b)

10

c)

5

d)

15

23.

when your investments are well diversified, your risk level is _______

a)

high

b)

low

c)

aggressive

d)

moderate

24.

which of the following retirement plans often come with employer matching?

a)

Roth IRA

b)

401(k)

c)

traditional IRA

d)

annuities