WorksheetsInvesting and Credit
Total questions: 30
Worksheet time: 15mins
Redirecting resources from being consumed today to create future benefit
a) Return
b) Portfolio
c) Investment
d) diversification
spreading out investments to reduce risk
a) Return
b) Portfolio
c) Investment
d) diversification
collection of financial assests
a) Return
b) Portfolio
c) Investment
d) diversification
Money an investor receives above and beyond the money initially invested.
a) Return
b) Portfolio
c) Investment
d) diversification
Steady drop or stagnation in the stock market over a period of time.
bull market
bear market
capital gain
capital loss
Difference between the selling and purchase prices that results in a financial profit for the seller.
bull market
bear market
capital gain
capital loss
Difference between the selling and purchase prices that results in a financial reduction for the seller.
bull market
bear market
capital gain
capital loss
Steady rise in the stock market over a period of time.
bull market
bear market
capital gain
capital loss
Why is a certificate of deposit (CD) considered such a safe investment?
it is issued by a savings bank.
it is guaranteed by the federal government (FDIC)
it pays a relatively high rate of return
it offers a high degree of liquidity
How does a pension fund act as an investment?
the fund lends money to those who are also investors in the pension
the company invests the money collected from employers and or employees in a wide range of investments.
the company uses the money collected from the employees to finance the company.
It takes the funds and disperses the money to employees that are in need of financial assistance.
What does a mutual fund do?
invests the savings of many investors
makes loans to banks
borrows money to leand to its memebers
insures companies
How does the risk of a money market mutual fund compare with that of a savings account?
A mutual fund has less risk than a savings account.
A mutual fund has slightly greater risk than a savings account.
A mutual fund has a greater risk than a savings account.
The risk of both are about the same.
Which of these investments is the least risky for investors?
corporate bonds
savings bonds
treasury bonds
stocks
What does the New York Stock Exchange do?
buys and sells stocks but not bonds ; for wealthy investors only
handles stock and bond trading on the internet only.
arranges stock and bond trading of many large and established companies.
tracks how well stocks are doing.
Which two are NOT examples of index's?
New York Stock Exchange
Standards and Poor
NASDAQ
Dow Jones Industrial Average
Which is NOT one of the three Cs of credit?
collateral
contribution
character
capacity
When a financial institution asks the question "will they repay" this loan they are investigating the persons
collateral
contribution
character
capacity
When a financial institution asks the question "can they repay the loan?" they are investigating the persons
collateral
contribution
character
capacity
Which are NOT some of the things financial institutions look for when they evaluate collateral?
equity in a home
savings account
FICO score
stocks and bonds
Which are NOT some of the things financial institutions look for when they evaluate character?
how long they have been with their employer
credit history
FICO score
criminal record
Which are NOT some of the things financial institutions look for when they evaluate capacity?
how long they have been with their employer
debt to income ratio
income
equity in the home
Which description matches an open/service credit?
has a maximum amount you can borrow, and every month you need to pay at least the minimum, but if you carryover a balance you will owe interest.
the borrower pays the same amount each month for agreed amount of time called terms
a card that withdraws amounts directly from a checking account to pay for goods at the time of purchase.
the borrow uses the good or service throughout the month and pays it all off at the end of the month
Which description matches an revolving credit?
has a maximum amount you can borrow, and every month you need to pay at least the minimum, but if you carryover a balance you will owe interest.
the borrower pays the same amount each month for agreed amount of time called terms
a card that withdraws amounts directly from a checking account to pay for goods at the time of purchase.
the borrow uses the good or service throughout the month and pays it all off at the end of the month
Which description matches installment credit?
has a maximum amount you can borrow, and every month you need to pay at least the minimum, but if you carryover a balance you will owe interest.
the borrower pays the same amount each month for agreed amount of time called terms
a card that withdraws amounts directly from a checking account to pay for goods at the time of purchase.
the borrow uses the good or service throughout the month and pays it all off at the end of the month
Which is an example of installment credit?
credit cards
mortgage
electricity
debit card
Which is an example of revolving credit?
credit cards
mortgage
electricity
debit card
Which is an example of open/service credit?
credit cards
mortgage
electricity
debit card
Which can be the only reason you are denied credit?
financial reasons
gender
ethnicities (race)
religion
Being able to buy something now, and pay for it later with possible interest is called
debit
credit
credit history
principal
Which is NOT one of the 3 credit bureaus ?
Bankcroft
Experian
Transunion
Equifax
