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WorksheetsInvesting (B11)
Total questions: 42
Worksheet time: 21mins
It's always best to take big risks with your first investments.
True
False
People who speculate when investing can lose a lot of money.
True
False
Professional investment planners who are trained to give investment advice based on your personal finances and goals
bankers
brokers
financial advisors
fiduciary agents
How are risk and return related?
lower risk leads to higher returns
higher risk leads to higher returns
higher risk leads to lower returns
If you aren't knowledgeable about investing and need advice about investment options, which type of broker should you use?
discount broker
full-service broker
Collectible are which type of investment?
low risk
medium risk
high risk
Penny stocks are which type of investment?
low risk
medium risk
high risk
Corporate bonds are which type of investment?
low risk
medium risk
high risk
Real estate is which type of investment?
low risk
medium risk
high risk
US savings bonds are which type of investment?
low risk
medium risk
high risk
Which is NOT a stage of investing?
strategic investing
special investing
initial investing
put and take account
What is the first stage of investing?
speculative investing
put and take account
initial investing
systematic investing
What is the last stage of investing?
special investing
strategic investing
speculative investing
systematic investing
Why do people invest?
to beat inflation
to increase wealth
because it's fun and challenging
All answers are correct.
Mutual finds are what type of investment?
low risk
medium risk
high risk
The use of long-term savings to earn a financial return
diversifying
investing
speculating
banking
You should always make investment decisions quickly to take advantage of the market.
True
False
An annuity is what type of investment?
low risk
medium risk
high risk
Treasury securities are what type of risk?
low risk
medium risk
high risk
A quick way to evaluate an investment's rate of return
Rule of 52
Rule of 60
Rule of 62
Rule Rule of 72
A collection of investments
portfolio
annual report
transcript
chart of accounts
Debt obligations of corporations or governments
stocks
bonds
annuities
real estate
Expected return is the only factor to consider when making investments.
True
False
The spreading of risk among many types of investments
liquidity
safety of principal
diversification
speculation
Which type of investment pools the money of many investors to buy a large selection of securities?
stocks
bonds
mutual funds
Treasury securities
A summary of a corporation's financial results for the year and future prospects
portfolio
investor newsletter
balance sheet
annual report
Low-priced stock of small companies that have no track record
junk bonds
penny stock
corporate bonds
junk stock
Investments with shorter terms (maturity dates) tned to pay higher returns.
True
False
Which type of Treasury security has the longest range of maturity dates?
Treasury Bills
Treasury Notes
Treasury Bonds
If you invest in a corporate bond, you will earn more money in years when the corporation has higher profits.
True
False
When you purchase stock, you own part of the company.
True
False
Which type of investment pays dividends?
corporate bonds
stock
real estate
US savings bonds
Which is NOT a type of US savings bond?
series EE bonds
series HH bonds
series P bonds
series I bonds
Before you start investing, how many months of income should you have in your savings account?
1-2 months
3-6 months
9-12 month
12-18 month
In the first stage of investing, the main concern should be safety.
True
False
The money that you earn on an investment
windfall
risk
return
refund
A one-time investment that you make with your tax return money would fall into what stage of investing?
initial investing
systematic investing
strategic investing
speculative investing
Investing on a regular and planned basis to create a financially secure future begins in which stage of investing?
initial investing
systematic investing
strategic investing
speculative investing
What is a benefit of investing in a mutual fund?
professional management
diversification
Both answers are correct.
Neither answer is correct.
Who might sell a municipal bond?
Amazon
US government
Delta Airlines
City of St. Marys
Who sells annuities?
insurance companies
banks
US government
local governments
Real estate is one of the most liquid types of investments.
True
False
