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WorksheetsSIFD: 1st MP Review
Total questions: 38
Worksheet time: 15mins
The central banking system of the U.S. that controls money supply and interest rates (sets prime rate)
U.S. Bank
Bank of America
U.S. Treasury
Federal REserve
Cody lost a $50 bet on the Yankees in the playoffs; the $50 he could of saved or invested wisely represents his
profit
opportunity cost
compound interest
consumable good
Which of the following is the best example of a depreciating asset
car
house
CD (certificate of deposit)
401k
Which of the following is an example of an intermediate financial goal for a recent graduate?
Save for a trip to Florida next spring break
To buy a home by age 30
To repay your student loan in 5 years
To marry someone wealthy
Which of the following is a common calculation used to determine approximately how long it will take to double your money?
= 72 / interest rate
Investment / 50
α2+b2 = c2
There is no such calculation
Which of the following would be considered saving rather than investing?
buying shares of stock
gambling
putting money into a CD
participating in an employer sponsored 401k
Aiden is an agent for Roda Real Estate, he earns 3% of the sale price for each home he sells; this type of compensation is known as
wage
salary
commission
bonus
You worked 10 hours last week and you earn $10 an hour. Your deductions from your paycheck last week included: FICAA $8, Fed Tax $10, and State Tax $2. What is your net pay?
$120
$100
$88
$80
Being paid by your job every two weeks is known as
biweekly
semi-monthly
weekly
pay day
A budgeting method where your first priority is to put money into your savings, followed by paying your monthly expenses, and have the remainder as your fun money.
Go big or go home
Envelope method
Zero-based budget
Pay yourself first
Which type of financial institution is most likely to pay a higher interest rate on a savings account than the others?
online bank (such as Discover or Ally)
Credit Union (such as LFCU)
Traditional Savings & Loan (such as Northwest Bank)
The Federal Reserve
The 30 in the 50/30/20 budgeting method is money put toward
your wants
your savings
your essentials
eating out
What does the zero "mean" in the zero-based budget?
You spend your entire check for the next check comes in.
Every dollar coming in is accounted (planned) for.
Zero dollars are put into savings.
You have no budget at all.
When creating a budget, it is recommended to start with
your financial goals.
a time period for the budget.
your income for the period.
your expenses for the period.
A budgeting method that involves setting aside cash for a variety of different expenses and savings is known as
financial planning
the envelope method
paying yourself first
the many piles method.
A personal retirement account that money is invested "after" tax and is not taxable when distribution taken.
403b
FSA
Roth IRA
401k
A retirement account where your private employer matches your contributions up to to a certain amount.
401k
IRA
403b
529 Account
A type of expense that the amount paid is consistent from month to month.
fixed expense
variable expense
periodic expense
revolving expense
A type of expense that is paid quarterly, semi-annually, or annually.
fixed expense
variable expense
revolving expense
periodic expense
What is a tax “advantaged” savings account that allows those with a high deductible insurance plan to save pre-tax dollars for qualified medical expenses in the future?
529 Account
Certificate of Deposit
HSA (health savings account)
FSA (flexible savings account)
If your employer does not offer a 401k plan and you believe that you will be in lower tax bracket when retired it is recommended to invest in
penny stocks
IRA
529 Account
Social Security
Which of the following could NOT be a source of income for a retiree?
Social Security
Pension
529 Account
IRA
401k
Which of the following would be considered the least risky investment?
Blue chip stock
Stock with a Beta # of 2.2
an IPO
Penny stock
A company with a market capitalization of $1.76 trillion is considered a
small cap stock
mid cap stock
large cap stock
risky investment.
What is an advantage of an online brokerage account (similar to our stock simulation in class)
Expert advice is included
High commissions paid
Low fees per transaction
A company that reinvests its' profits back into the company rather than sharing the profits with its' stockholders is known as a
penny stock.
income stock.
cyclical stock.
growth stock.
Overall, this type of stock is considered the most risky. The companies tend to be new, have a low market cap, and unstable sales.
mid-cap stocks
defensive stocks
penny stocks
income stocks
I see as stock that I believe is about to take off and want to purchase it now before the price increases, I would enter a __ order.
buy - limit
market
stop
express
The market is on the decline, I hold a stock that I've made a reasonable profit on and I want to sell it before the fall in the market cuts into my profit, I should enter a __ order
stop
sell limit
buy limit
market
The current price of a stock is at $27.50; I would like to get it at if the price dips to $26.00 but don't want to sit and watch the price, I should enter a __ order.
buy-limit
sell-limit
market
conservative
When a stock is offered to the public for the very first time, it is known as a(n)
flash sale
IPO (initial public offering)
blue chip stock
ISO (intial stock offering)
The Dow Jones Industrial Average, S&P 500, and the NASDAQ composite are all examples of
security exchanges
primary markets
sound investments
market indexes
The total value of all stocks and bonds issued by a corporation is reflected as their
market capitalization.
beta number.
earnings per share.
PE ratio.
This classification of stock tends to remain more stable during a down economy.
growth stock
cyclical stock
defensive stock
stock split
Income stocks tend to pay __ regularly.
interest
preferred shares
commissions
dividends
When the market is performing well and investors are feeling good it is known as a __ market. On the other hand when the market is on the decline and investors are pessimistic is is called a __ market.
bear / bull
bull / bear
The price of a stock in the secondary market is ultimately determined by
the Dow.
analysts reports.
the company's board of directors.
what a buyer is willing to pay.
A stock is a type of security that represents a share of ownership in a corporation.
False
True
