WorksheetsUnit 3 Investing Unit
Total questions: 34
Worksheet time: 18mins
A key difference between saving and investing is
Saving is for everyone, investing is for the wealthy
Your money is insured when investing, it is not in savings
Investing has a guaranteed return, savings does not
Saving is for emergencies & goals, investing is for long-term wealth
Why is compound interest more beneficial than simple interest?
Your money grows faster when it is compounded
Your taxed on simple interest, but not compound interest
Fees for compound interest are greater than simple interest
Compound interest is hard to calculate, so fewer use it
Which would be considered the highest risk investment type?
Stock
Mutual Fund
Bond
Money Market Account
The relationship between risk and return can be stated as
Higher risk indicates higher return
Higher risk indicates lower return
Lower risk indicates higher return
No relationship exists between risk and return
How is a bond fund different from an individual bond?
A bond fund is a group of bonds and is considered more diversified
A bond fund always gives you a higher interest rate than an individual bond
A bond is issued by the government. A bond fund is issued by a company.
A bond fund can't be sold but an individual bond can
This is the smallest country in the world
The Vatican
Romania
Croatia
Moldova
If Jonathan is earning 2% on an investment and inflation is increasing by 3%, what is happening to his purchasing power?
It's increasing
It's decreasing
It's not changing
Inflation and purchasing power are not related
How can you make money on stocks?
Buy them when the price is high and sell when the price is low
Interest
Dividends
Holding the stock at least 3 years
A _____ is a loan given to an organization while a _______ is partial ownership in the company.
bond, ETF
stock, bond
bond, stock
ETF, bond
The Great Pyramid is thought to be constructed of over ................. stone blocks
500,000
1,000,000
1,500,000
2,000,000
Andy bought 5 shares of a company for $10. Later, he sold all 5 shares for $15. What was his profit/loss on the stock?
Profit of $5
Loss of $5
Profit of $25
Loss of $25
What is the main appeal of an index fund?
They are always actively managed to add a human touch
They are typically low cost and diversified investments
They are always managed by a robo-advisor to remove human bias
They give you partial ownership of a single company
An account that is used to buy and sell stocks, bonds, and funds is called a
Roth IRA
ETC Account
Brokerage Account
Target Date Fund
A diversified portfolio is desirable because
It limits investment choice
It's a good predictor on rate of return
It increases risk and return
It decreases risk
The highest peak in the world is:
Moldoveanu
Retezat
Everest
Mont Blanc
What is Social Security?
Social Security is a private retirement fund run by your company
Social Security is another name for a 401(k)
Social Security is a government run retirement program
Social Security is a program that matches your 401(k) contributions
Why is it important to start investing as soon as possible?
You take less risk when you are young, so money will be safe
You have more time for your money to compound
Investing is an easy way to make quick money
Fees on investments are cheaper when you are younger
Employer sponsored retirement savings plan funded by a portion of your salary
401k
Traditional IRA
Mutual Fund
Annuity
What word becomes shorter when you add two letters?
for
bee
short
and
Market condition that occurs when investors are optimistic about the economy and buy stocks
Bear Market
Bull Market
Market Order
Limit Order
An investment account where a person saves a portion of income for retirement. Not employer sponsored.
Social Security
401k
Mutual Fund
IRA
What color is a polar bear's skin?
White
Tan
Black
Brown
A ____ market is a sign of rising stock prices
bear
bull
turtle
mustang
Funds in this type of IRA will grow tax free because taxes have already been paid on the money invested.
Roth
Traditional
Mutual funds are less risky and can outperform the stock market because . . .
They are not diversified
They guarantee a high rate of return
They are liquid
They are diversified because they invest in several companies at once
A snail can hibernate for 3 _____.
months
years
days
weeks
