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FPI 2.04 Vocabulary

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What are stock mutual funds?

a)

Ownership investments in which a variety of stocks from different corporations

b)

Investments in which individuals lend money to a bank to earn a set rate of interest for a specified period of time

c)

Ownership investments in which a variety of stocks from different corporations or agencies (usually from different industries) are combined into one investment

d)

An investment fund in which donated assets are pooled together to create additional wealth for a nonprofit institution

2.

What are bonds?

a)

Objects or items collected by someone who has an interest in the sport

b)

Lending investments in which individuals lend money to a government, municipality, or corporation to earn a set rate of interest for a specified time period

c)

Investments in which lenders allow borrowers to use their money during a period of time for a specified fee or rate of interest

d)

Shares or units of ownership in a corporation

3.

What are collectibles?

a)

Objects or items collected by someone who has an interest in the sport

b)

Lending investments in which individuals lend money to a government, municipality, or corporation to earn a set rate of interest for a specified time period

c)

Investments in which lenders allow borrowers to use their money during a period of time for a specified fee or rate of interest

d)

Shares or units of ownership in a corporation

4.

What is depreciation?

a)

The loss of value due to market forces

b)

Starting and building a business

c)

An investment fund in which donated assets are pooled together to create additional wealth for a nonprofit institution

d)

The possibility of investment loss

5.

What are certificates of deposit (CDs)?

a)

Objects or items collected by someone who has an interest in the sport

b)

Lending investments in which individuals lend money to a bank to earn a set rate of interest for a specified period of time

c)

Investments in which lenders allow borrowers to use their money during a period of time for a specified fee or rate of interest

d)

Shares or units of ownership in a corporation

6.

What is entrepreneurship?

a)

The loss of value due to market forces

b)

Starting and building a business

c)

An investment fund in which donated assets are pooled together to create additional wealth for a nonprofit institution

d)

The possibility of investment loss

7.

What are money market accounts?

a)

Objects or items collected by someone who has an interest in the sport

b)

Lending investments in which individuals lend money to a bank to earn a set rate of interest for a specified period of time

c)

Investments in which lenders allow borrowers to use their money during a period of time for a specified fee or rate of interest

d)

Shares or units of ownership in a corporation

8.

What is a stock?

a)

Investments in which individuals lend a minimum amount of money to a bank to earn interest

b)

Benefit received in return for an investment

c)

Shares or units of investment in a business

d)

Shares or units of ownership in a corporation

9.

What is return?

a)

The reward or benefit received in return for an investment

b)

The loss of value due to market forces

c)

An investment fund in which donated assets are pooled together to create additional wealth for a nonprofit institution

d)

The possibility of investment loss

10.

What are ownership investments?

a)

Objects or items collected by someone who has an interest in the sport

b)

Lending investments in which individuals lend money to a government, municipality, or corporation to earn a set rate of interest for a specified time period

c)

Investments in which lenders allow borrowers to use their money during a period of time for a specified fee or rate of interest

d)

Investments in which individuals purchase a portion or all of an item; investments that provide owners' rights in return

11.

What is an endowment fund?

a)

The loss of value due to market forces

b)

Starting and building a business

c)

An investment fund in which donated assets are pooled together to create additional wealth for a nonprofit institution

d)

The possibility of investment loss

12.

What is FDIC?

a)

The loss of value due to market forces

b)

A government agency created to ensure the stability of the U.S. banking system

c)

An investment fund in which donated assets are pooled together to create additional wealth for a nonprofit institution

d)

The possibility of investment loss

13.

What is real estate?

a)

Objects or items collected by someone who has an interest in the sport

b)

Lending investments in which individuals lend money to a government, municipality, or corporation to earn a set rate of interest for a specified time period

c)

Investments in which lenders allow borrowers to use their money during a period of time for a specified fee or rate of interest

d)

An ownership investment in which individuals purchase property in buildings and land

14.

What does the term temperament describe?

a)

A person's nature / personality

b)
A person's physical appearance
c)
A person's educational background
d)
A person's financial status
15.

What is risk?

a)

The reward or benefit received in return for an investment

b)

The loss of value due to market forces

c)

The possibility of investment loss

d)

Having a negative attitude toward risk

16.

What does it mean to be risk-averse?

a)

Having a negative attitude toward risk

b)

Having a positive attitude toward risk

c)

The possibility of investment loss

d)

The reward or benefit received in return for an investment

17.

What are securities?

a)

The legal owning or lending agreements between individuals, businesses, or governments

b)

Shares or units of ownership in a corporation

c)

Investment in which individuals purchase property in buildings and land

d)

 Investments in which a variety of stocks from different corporations or agencies (usually from different industries) are combined into one investment

18.

What does it mean to be risk-tolerant?

a)

Having a negative attitude toward risk

b)

Having a positive attitude toward risk

c)

The possibility of investment loss

d)

The reward or benefit received in return for an investment

19.

What are savings accounts?

a)

Objects or items collected by someone who has an interest in the sport

b)

Lending investments in which individuals lend money to a bank to earn a set rate of interest for a specified period of time

c)

Investments in which lenders allow borrowers to use their money during a period of time for a specified fee or rate of interest

d)

Shares or units of ownership in a corporation

20.

What is a lending investment?

a)

Investments in which individuals purchase a portion or all of an item; investments that provide owners’ rights in return

b)

Investments in which borrowers allow lenders to use their money during a period of time

c)

Investments in which lenders allow borrowers to use their money during a period of time for a specified fee or rate of interest

d)

Investments in which lenders borrower for a specified fee or rate of interest