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WorksheetsFinal Review: Investing
Total questions: 10
Worksheet time: 5mins
1. Building Wealth is the process of
Saving money in the bank and not spending it
Collecting material possessions which maintain value, such as gold jewelry, diamonds, paintings etc
Not spending
Combining budgeting, saving and investing to increase net worth
A security that represents part ownership of a company is called a(n) _____________.
Stock
Bond
Certificate of Deposit
Annuity
When you invest in a mutual fund, you are contributing to a pool of money that will be . . .
Given to hundreds of local charities in your area
Invested in a mix of stocks, bonds and money market accounts
Taxed based on each individual investor's annual salary
Put into a separate savings account for your children to inherit someday
Diversification reduces your __________ by using a mix of investment types in your portfolio.
Mutual funds
Risk
Retirement Funds
Income
Roth IRA, 401(k), 403(b), 457, and Simplified Employee Pension are all examples of
Tax forms
Mutual funds
Retirement plans
Investment bankers
Mutual funds are less risky and can outperform the stock market because . . .
They're not diversified.
They guarantee a high rate of return.
They're fully liquid.
They invest in several companies at once.
Earning interest on interest is called?
Compound interest
Investing
Earned interest
bonding
Based on the Rule of 72, money earning 8 percent would take about _____ years to double.
6
9
8
12
Which of the following statements about mutual funds is true?
Mutual funds are only invested in stocks.
Mutual funds are not regulated by any financial authorities.
Mutual funds pool money from multiple investors to invest in a diversified portfolio of securities.
Mutual funds guarantee a fixed rate of return to investors.
What sets index funds apart from other mutual funds?
Index funds have higher fees compared to actively managed mutual funds.
Index funds aim to match the performance of a specific market index rather than actively selecting investments.
Index funds are exclusively focused on investing in individual stocks of tech companies.
Index funds are known for their ability to provide guaranteed returns regardless of market fluctuations.
