WorksheetsInvestments
Total questions: 49
Worksheet time: 24mins
What is a mutual fund ?
connection between stock broker and buyer
a connection between a company and the buyers that allows them to sell stocks
a bank account that has multiple users and all are allowed to spend money
an investment fund set up by the company that receives money from many investors
Great for emergency funds due to their liquidity and stability
Savings Accounts
CD's - Certificate of Deposits
Retirement Account
Brokerage Account
You can start investing with a small amount of money.
True
False
Which would be considered the highest risk investment type?
stock
mutual fund
bond
money market fund
What is the chief reason corporations issue stock?
To raise money for the corporation
To give consumers ownership in the company
To secure tax advantages
To help the economy
When John bought a Microsoft bond, he was:
borrowing money from Microsoft
Buying part ownership of Microsoft
Investing in a liquid instrument
Lending money to Microsoft
What is a good habit to develop as a young adult?
Attending Parties with Friends
Saving money with every paycheck
Borrowing money for emergencies
Living Paycheck to Paycheck
What determines the amount of money you can gain or lose in Investing?
Principal Deposit
Interest Rates
Payments to Checking Account
How much you Save each paycheck
What is the indicator that shows your Investment is losing or gaining money in your portfolio?
Checkbook balance
Stock Market
Bank Withdrawals
Daily Purchases
Which of these is associated with Investing in a Stock?
Risk
Where you Work
Taxes
Purchasing a Car
Which of the following statements defines portfolio?
A. Ownership of a company which enacts rights and responsibilities
B. Cash or financing provided for the growth of a particular business
C. Collection of investments on marketable or nonmarketable securities
D. Market for trading of company stocks at an agreed price
Which of the following terms describes the leftover amount when liabilities or debts are subtracted from the assets owned?
A. Portfolio
B. Trades
C. Net worth
D. Bonds
Nancy, who is 60 years old, is changing her investment portfolio to one with less risk than she has had in the past. She is putting most of her money in cash investments such as money market funds and certificates of deposit. Which of the following best describes this scenario?
A. Low risk
B. Limited risk
C. Moderate risk
D. High risk
If you buy 200 shares of a company’s stock which pays $1.50 per share in dividends each year, how much money will you earn in the first year in dividends only?
$300
$150
$500
$250
If you purchase a bond with a face value of $1000 at a 10 percent discount, how much will you pay for the bond?
$900
$1500
$600
$990
Which of the following is a corporate bond which is simply secured or “backed” by the general credit of the corporation?
A. Debenture bond
B. Asset-backed bond
C. General review bond D. Fixed bond
D. Fixed bond
Municipal bonds can be used by different levels of government to do which of the following?
A. Highway projects
B. Tree system projects
C. Hire a new basketball coach
D. Investor projects
An agency bond is a bond related to which of the following?
A. Government
B. Bank
C. Company
D. Individuals
If you buy a $10,000 bond which pays eight percent interest once a year, and you hold the bond for one year, how much will you earn in interest?
A. $80
B. $800
C. $66.66
D. $8.00
A “T-bill” refers to a U.S. Treasury bond which is considered which of the following?
A. Low-risk cash investment
B. High-risk cash investment
C. Current cash investment
D. Discount cash investment
Which of the following is a corporate bond which is secured or “backed” by some or all of the assets of the corporation?
A. Debenture bond
B. Asset-backed bond
C. General revenue bond
D. Ownership bond
Which type of investment carries the lowest risk for an average individual investor?
A. Individual growth stocks
B. Agency bonds
C. Balanced mutual funds
D. Speculative mutual funds
Alice deposits $100 into her mutual fund account every month, buying as many shares as this amount will cover. Which of the following terms best fits this scenario?
A. Monthly average return
B. Monthly cost averaging
C. Return cost averaging
D. Dollar cost averaging
The risk level of a mutual fund is dependent on which of the following?
A. Administrative fees within the fund
B. Stocks and bonds held within the fund
C. Individual growth
D. Stock market
The fund has had a consistent return for the last three to five years. This statement describes which of the following?
A. Performance
B. Risks
C. Costs
D. Balanced
The division of outstanding shares of a corporation into a larger or smaller number of shares
Dividend
Sharing
Stock Split
Which of the following describes the rate at which the general level of prices for goods and services rise?
Liquidity
Interest
Inflation
Appreciation
Which of the following is the act of buying an asset to generate returns from it over a period of time while also taking care of risk and volatility?
Investing
Saving
Compounding
Evaluating
Which of the following is interest computed on the principal, excluding previously earned interest?
Fixed interest
Compound interest
Variable interest
Simple interest
How much would $10,000 on deposit at a five percent annual compound interest rate for three years earn?
$1,500
$1,250
$1,576.25
$2,576.25
Which of the following are intermediaries between buyers and sellers to facilitate security transactions?
Insurance companies
Brokerages
Commercial banks
Investment banks
Which of the following is a true statement about saving?
Saving is income which is not consumed
Saving is typically for long-term goals
Saving usually involves a high risk of losing money
Saving earns a higher return compared to investments
Which of the following is a contract between an investor and an insurance company in which the company promises to make periodic payments to the investor?
High-yield bank account
Certificate of deposit
Money market fund
Annuity
Which of the following does a prepaid tuition plan NOT cover?
Books and supplies
Tuition and fees
Room and board costs
Computer and peripherals
Which of the following is NOT a true statement about investing?
Investing can help a person reach long-term goals
Investing may result in losing some or all of the money invested
Investing usually gains lower returns than saving
Investing is the allocation of money or other resources with regards to the expectation of some benefits in the future
Which of the following describes a portion of ownership in a corporation?
Stock
Bond
Mutual fund
Real estate
Which of the following is NOT one of the most popular precious metals with investors?
Gold
Silver
Copper
Platinum
Which of the following describes the degree to which an asset can be quickly bought in the market without affecting the asset’s price?
Liquidity
Cash flow
Value
Interest
Which of the following involves restricting expenses and keeping the unspent money in one’s own custody for the purpose of accumulating it?
Investing
Compounding
Saving
Evaluating
Which of the following is interest calculated on the initial principal as well as the accumulated interest of previous periods?
Compound interest
Simple interest
Fixed interest
Variable interest
Which of the following is an employer-sponsored retirement savings plan?
401K Plan
Annuity
C. Money market fund account
Savings
Account
Which of the following is considered to be a long-term goal?
Purchasing household furniture
Saving up for a family vacation
Saving for a college education
Establishing an emergency fund
It provides a marketplace for buying and selling millions of corporate stocks
This exchange allows investors to buy and sell stock and provides a key index on performance .
NYSE
AMEX
NASDAQ
SEC
This is the third largest trading floor of trading volume in the US. In 2008, it was acquired by NYSE Euronext.
AMEX
SEC
NASDAQ
NYSE
This is a U.S. based stock exchange that is dominated by technology stocks.
SEC
NASDAQ
AMEX
NYSE
This is an independent federal government regulatory agency responsible for protecting investors, maintaining fair and orderly functioning of the securities markets.
AMEX
SEC
NASDAQ
NYSE
This is the largest stock exchange in the world based on the total market capitalization of its listed securities.
NYSE
AMEX
SEC
NASDAQ
