WorksheetsInvestments
Total questions: 20
Worksheet time: 11mins
Which is true about risk and return?
More risk = less possibility to make moeny
Less Risk = More possibility to make money
More Risk = more possibility to make money
Risk and return are calculated with the rule of 72
Rule of 72 is the rule that...
Calculates how much your company is matching for your retirement plan
Calculates how much time it will take to double your money
The IRS uses to calculate interest rates on bonds
Decides which mutual funds are worth investing in
A collection of stock bought as a package deal is called a
Bond
Stock
Mutual Fund
401k
Investment securities where an investor lends money to a company or government for a set period of time in exchange for regular interest payments.
Stocks
Roth IRA
Mutual Funds
Bonds
The process of spreading your investments around so that your exposure to any one asset is limited.
Liquidity
Rule of 72
Diversification
Index Funding
The ease to which an asset or security can be converted into ready cash without effecting it’s market price.
Liquidity
Diversification
Collectability
Compound Intrest
The risk that your purchasing power will be reduced if the value of your investments does not keep up with inflation.
Simple Intrest Risk
Investment Risk
Inflation risk
Investment Philosophy
Stocks are riskier than bonds
True
False
You should invest as soon as you can.
True
False
interest earned becomes part of the principal and then earns interest itself
risk
compound interest
401(k)
return
the amount of money an investment earn
risk
compound interest
401(k)
return
the possibility that an investment will lose money
risk
compound interest
401(k)
return
Which of the following financial contracts involves risk?
Checking accounts
Payroll advances
Investment banking
Savings accounts
Which of the following insures checking account deposits?
Federal Trade Commission
Federal Deposit Insurance Corporation
Federal Administration for Financial Deposit Guarantees
Individual state governments
