WorksheetsChapter 16 Review
Total questions: 18
Worksheet time: 12mins
Name
Class
Date
1.
With inflation, it takes more money to buy the same goods and services.
a)
True
b)
False
2.
Most financial advisers recommend that you keep three to six weeks’ net pay in your put-and-take account.
a)
True
b)
False
3.
When you invest in stocks and bonds, you are helping businesses make and sell new products and services.
a)
True
b)
False
4.
Your initial investing should be conservative with low risk.
a)
True
b)
False
5.
The greater risk you are willing to take, the greater the potential return.
a)
True
b)
False
6.
Nonmarket risk is entirely predictable and controllable.
a)
True
b)
False
7.
It is illegal to use information in a company’s annual report for investment purposes.
a)
True
b)
False
8.
The use of long-term savings to earn a financial reward is called
a)
investing
b)
gambling
c)
speculating
d)
diversifying
9.
Which of the following is typically the first stage of investing?
a)
speculation
b)
systematic investing
c)
a put-and-take account
d)
strategic investing
10.
All of the following are wise investment practices except:
a)
seek good investment advice.
b)
keep good financial records.
c)
define your financial goals.
d)
make your decisions quickly to take advantage of the market.
11.
Which of the following would be considered the lowest risk investment?
a)
a stock
b)
real estate
c)
a corporate bond
d)
an annuity
12.
The right, but not the obligation, to buy or sell a commodity or stock for a specified price within a specified time period is called a(n)
a)
a discount bond
b)
annuity
c)
option
d)
future
13.
A contract that obligates the buyer to purchase (or the seller to sell) stock or a commodity for a specified price on a specified date in the future.
a)
option
b)
a discount bond
c)
future
d)
annuity
14.
The general rise of prices is called (a) .
15.
A(n) (a) is a summary of a corporation’s financial results for the year and its prospects for the future.
16.
(a) stocks are low-priced stocks of small companies that have no track record.
17.
What is a put-and-take account?
4 lines
18.
Why should you diversify your investments?
4 lines
100 %
