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Investing Vocab Quiz

Total questions: 45

Worksheet time: 29mins

Name
Class
Date
1.

The interest calculated on both the principal and the accrued interest.

a)

Simple Interest

b)

Compound interest

c)

IRA

d)

Rule of 72

2.

The amount of time it takes for money to double in value when invested.

a)

Rule of 2

b)

Maturity date

c)

Rule of 72

d)

Expenditure rate

3.

The chance you take when you invest.

a)

Risk

b)

Interest

c)

loss

d)

growth

4.

Saving accounts can be easily converted to spendable money so it is...

a)

Mutual funds

b)

high growth rate

c)

Liquidity

d)

solidity

5.

401K is a work-sponsored...

a)

IRA

b)

Retirement plan

c)

Government bond

d)

investment into your work stock

6.

Taking a certain amount of money you earn monthly and putting it into saving, as a discipline

a)

rule of 72

b)

pay yourself first rule

c)

being an adult

d)

rule of return

7.

A pool of money invested by professions into a group of stocks. WIth medium risk

a)

High end stocks

b)

mutual finds

c)

savings account

d)

IRA

8.

Shares in a company a part ownership in a specific company.

a)

Stocks

b)

bonds

c)

certificates

d)

asset

9.

An account for unexpected expenses: such as car break down, surgery, the new roof needed on the home.

a)

investments

b)

emergency fund

c)

rations

d)

quick loans

10.

a self-funded retirement plan that allows you to contribute a limited yearly sum toward your retirement

a)

IRA

b)

bonds

c)

401K

d)

IST

11.

Something you own of value

a)

Asset

b)

Goals

c)

liability

d)

debt

12.

Which is a reason to set financial goals?

a)

to buy a home

b)

eduction

c)

retirement

d)

vacation

e)

All of the above

13.
Bond
a)
A form of lending to a company or the government
b)
Facilitates the buying and selling of investments from a stock exchange
c)
A trained professional that helps people make investing decisions
d)
An individual’s general approach to investment risk
14.
Brokerage firm
a)
Facilitates the buying and selling of investments from a stock exchange
b)
A form of lending to a company or the government
c)
Offer investment transactions as well as investment advice and a financial advisor
d)
Reduce, defer, or adjust the current year tax liability
15.
Dividend
a)
The share of profits distributed in cash
b)
Facilitates the buying and selling of investments from a stock exchange
c)
The rise in the general level of prices
d)
The chance of loss from an event that cannot be entirely controlled
16.
Financial advisor
a)
A trained professional that helps people make investing decisions
b)
Facilitates the buying and selling of investments from a stock exchange
c)
The rise in the general level of prices
d)
Reduce, defer, or adjust the current year tax liability
17.
Index
a)
A group of similar stocks and bonds
b)
A form of lending to a company or the government
c)
The danger that money won’t be worth as much in the future as it is today
d)
An individual’s general approach to investment risk
18.
Index fund
a)
A mutual fund that was designed to reduce fees by investing in the stocks and bonds that make up an index
b)
Unearned income received from the sale of an asset above its purchase price
c)
A group of similar stocks and bonds
d)
The chance of loss from an event that cannot be entirely controlled
19.
Inflation risk
a)
The danger that money won’t be worth as much in the future as it is today
b)
Unearned income received from the sale of an asset above its purchase price
c)
Offer investment transactions as well as investment advice and a financial advisor
d)
Reduce, defer, or adjust the current year tax liability
20.
Investment
a)
Assets purchased with the goal of providing additional income from the asset
b)
A form of lending to a company or the government
c)
The rise in the general level of prices
d)
The owner of a stock
21.
Maturity date
a)
The specified time in the future when the initial investment of the bond is repaid to the bondholder
b)
Only completes orders to buy and sell investments
c)
Offer investment transactions as well as investment advice and a financial advisor
d)
Reduce, defer, or adjust the current year tax liability
22.
Mutual fund
a)
Created when a company combines the funds of many different investors to invest in a diversified portfolio of investments
b)
A form of lending to a company or the government
c)
A mutual fund that was designed to reduce fees by investing in the stocks and bonds that make up an index
23.
Portfolio diversification
a)
Reduces risk by spreading money among a wide array of investments
b)
Facilitates the buying and selling of investments from a stock exchange
c)
A group of similar stocks and bonds
d)
The owner of a stock
24.
Rate of return
a)
The total return on an investment expressed as a percentage of the amount of money saved
b)
Unearned income received from the sale of an asset above its purchase price
c)
A trained professional that helps people make investing decisions
25.
Speculative Investments
a)
Have the potential for significant fluctuations in return over a short period of time
b)
The share of profits distributed in cash
c)
A mutual fund that was designed to reduce fees by investing in the stocks and bonds that make up an index
26.
Stock exchange
a)
An organized, central service to buy and sell stocks, bonds and other investments that are traded
b)
A form of lending to a company or the government
c)
Offer investment transactions as well as investment advice and a financial advisor
27.

The amount of money you gain from an investment.

a)

Capital Loss

b)

Doubled up

c)

Speculative Investment

d)

Capital Gains

28.

The sale of an investment for less that its purchase price

a)

Mutual Funds

b)

Sales Withdrawal

c)

Capital Loss

d)

Investment deduction

29.

The largest stock exchange in the world in terms of amount of money traded

a)

S&P 500

b)

NASDAQ

c)

Dow Jones

d)

NYSE

30.

__________ stands for the National Association of Securities Dealers Automated Quotations.

a)

NASDAQ

b)

NYSE

c)

NYC

d)

DOW

31.

A term referring to a category of investments

a)

Security

b)

Bond

c)

Index Fund

32.

A Bull Market is.....

a)

an extended period of consumer confidence and optimism when stock prices rise

b)

an extended period of uncertainty and pessimism, stock prices fall

c)

pooling money of many different investors

d)

a formal market where securities are bought and sold

33.

An extended period of uncertainty and pessimism when stock prices fall is called _________________.

a)

bull market

b)

bear market

c)

cow market

d)

shark market

34.

Owners of this earn dividends declared by the company. They can vote in the board of directors and on other matters presented at shareholder meetings.

a)

common stock

b)

preferred stock

c)

mutual funds

d)

bonds

35.

Owners of this receive regular dividends at a set rate. In addition they have first claim on assets if a company fails. They do not have voting privileges.

a)

common stock

b)

preferred stock

c)

capital gain

d)

stockbroker

36.
Gives information about the 30 largest companies in the U.S.
a)
Dow Jones Industrial Average
b)
NASDAQ
c)
S & P 500
d)
The Federal Reserve
37.
Gives information about the most representative 500 companies in the U.S.
a)
Dow Jones Industrial Average
b)
NASDAQ
c)
S & P 500
d)
The Federal Reserve
38.
If you only check ONE stock index, you should check the ________________. 
a)
Dow Jones Industrial Average
b)
NASDAQ
c)
S & P 500
d)
Federal Reserve
39.
The SAFEST place to put your money is:
a)
a stock
b)
a bond
c)
a Certificate of Deposit (C.D.)
40.

The world's largest stock exchange, physically located in New York City

a)

New York Stock Exchange (NYSE)

b)

S&P 500

c)

Bull Market

d)

Nasdaq

41.

Growing __________ is done by investing and taking advantage of compound interest

a)

wealth

b)

simple interest

c)

inflation

d)

salary

42.

ITEMS or PROFILES you can BUY as a way to invest

a)

stocks, bonds, ETFs, index funds, mutual funds

b)

403(b), 457(b), 401(k), Roth IRA, Traditional IRA, pension

c)

Social Security

d)

NASDAQ , New York Stock Exchange, stock brokerage firm

43.

Type(s) of RETIREMENT investment account(s) that YOU OPEN YOURSELF

a)

stocks, bonds, ETFs, index funds, mutual funds

b)

403(b), 457(b), 401(k), Roth IRA, Traditional IRA, pension

c)

Social Security

d)

NASDAQ , New York Stock Exchange, stock brokerage firm

44.

Type(s) of RETIREMENT investment account(s) that YOU AUTOMATICALLY CONTRIBUTE TO, whether you want to or not

a)

stocks, bonds, ETFs, index funds, mutual funds

b)

403(b), 457(b), 401(k), Roth IRA, Traditional IRA, pension

c)

Social Security

d)

NASDAQ , New York Stock Exchange, stock brokerage firm

45.

PLACES where investing happens

a)

stocks, bonds, ETFs, index funds, mutual funds

b)

403(b), 457(b), 401(k), Roth IRA, Traditional IRA, pension

c)

Social Security

d)

NASDAQ , New York Stock Exchange, stock brokerage firm