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Personal Finance Vocab 2

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

A market in which prices are falling, encouraging selling.

a)

bear market

b)

bond

c)

bull market

d)

dividend

2.

A market in which there is increased stock trading and rising stock prices.

a)

bear market

b)

bond

c)

bull market

d)

dividend

3.

Money from the profits of a company that is paid out to its shareholders, typically on a quarterly basis

a)

bear market

b)

bond

c)

bull market

d)

dividend

4.

A security in which the investor loans money to a company or government, which then pays regular interest to the bondholder and returns the principal on the bond's maturity date.

a)

bear market

b)

bond

c)

bull market

d)

dividend

5.

A low-fee portfolio of stocks chosen to track or mimic a stock market index, thereby removing the human element of investing because no one is choosing the individual stocks.

a)

individual retirement account (IRA)

b)

inflation

c)

investing

d)

index fund

6.

An investing tool for individuals to earmark funds specifically for their retirement.

a)

individual retirement account (IRA)

b)

inflation

c)

investing

d)

index fund

7.

The rate at which the price of goods increases and consumer purchasing power decreases over time.

a)

individual retirement account (IRA)

b)

inflation

c)

investing

d)

index fund

8.

The process of setting money aside to increase wealth over time for long-term financial goals such as retirement.

a)

individual retirement account (IRA)

b)

inflation

c)

investing

d)

index fund

9.

A collection of stocks and/or bonds combined into one fund which will be traded as a unit, typically chosen and actively managed by an "expert" in exchange for a fee from each investor.

a)

new york stock exchange (NYSE)

b)

mutual fund

c)

nasdaq

d)

pension

10.

The second largest stock exchange in the work behind the NYSE.

a)

new york stock exchange (NYSE)

b)

mutual fund

c)

nasdaq

d)

pension

11.

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

a)

new york stock exchange (NYSE)

b)

mutual fund

c)

nasdaq

d)

pension

12.

A retirement account, offered in some job sectors or companies, that an employer maintains to give an employer maintains to give an employee a fixed payout at retirement.

a)

new york stock exchange (NYSE)

b)

mutual fund

c)

nasdaq

d)

pension

13.

An individual retirement account that allows a person to set aside after-tax income up to a specified amount each year.

a)

security

b)

s&p 500

c)

roth IRA

d)

social security

14.

A financial asset, such as a stock or a bond, that can be bought and sold in a financial market.

a)

security

b)

s&p 500

c)

roth IRA

d)

social security

15.

An index of 500 large cap companies chosen based on their size, industry, and other factors, used to represent the entire market.

a)

security

b)

s&p 500

c)

roth IRA

d)

social security

16.

A federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals.

a)

security

b)

s&p 500

c)

roth IRA

d)

social security

17.

A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company.

a)

stock

b)

treasury bond

c)

stock exchange

d)

traditional 401(k) plan

18.

A market where shares in corporations are bought and sold through an organized system.

a)

stock

b)

treasury bond

c)

stock exchange

d)

traditional 401(k) plan

19.

A bond, generally considered to be a risk-free investment, issued by the U.S. Treasury with a maturity of more than 10 years.

a)

stock

b)

treasury bond

c)

stock exchange

d)

traditional 401(k) plan

20.

A retirement savings plan, sponsored through your employer who will often match your contributions, that allows an individual to save for retirement and have the savings grow while deferring taxes until funds are withdrawn.

a)

stock

b)

treasury bond

c)

stock exchange

d)

traditional 401(k) plan