WorksheetsAhorros e Inversiones
Total questions: 28
Worksheet time: 22mins
Interest that is earned on the principal only is
simple interest
compound interest
complex interest
real interest
The potential risk that the value (or price) of your investment will decrease is
Fraud
Financial
Market
Inflation
The risk that the value of your investment could decrease due to rising prices is known as financial risk.
True
False
Interest that is earned on the principal plus on the interest already earned is called
simple
compound
complex
real
Being able to determine how long it takes to double your money given a certain interest rate is
Diversification
Compound interest
the Rule of 72
the Rule of 62
You invest $2000 in mutual funds making 10%, how long would it take to double your money?
72 years
7.2 years
less than one year
6 years
An overall increase in prices is called
interest
income
inflation
insane
You're earning 8% on your investment, but inflation is at 3%. What is your real rate of return?
5%
8%
3%
-5%
The higher the risk,...
the higher the reward
the crazier you are
the higher the potential reward
the lower the reward
What is NOT true about diversification?
Helps to spread your investments around
Guarantees you won't lose money
Spending and investing each have benefits and opportunity costs.
True
False
The benefit of having a Certificate of Deposit (CD) is...
your money will grow quickly
you can get your money any time you want
your money is insured and earns interest
there are no benefits
An IOU to a business is a...
government bond
corporate bond
utility bond
bail bond
Which is NOT a reason to invest in mutual funds?
automatically diversified
most have an active manager
good for people with limited funds and knowledge
guarantee a good rate of return
Which of the following is a saving strategy?
Money Market Mutual Funds
Mutual Funds
Stocks
Corporate bonds
Which investment has the highest risk?
The principal is
your friend
the amount you earn on your investment
the original amount of your investment
the profit you earn
Which of the following is the least liquid?
real estate
a CD
stock
mutual funds
A portfolio is the name given to your personal assets, including savings, investments and cash.
True
False
You have $1000 to buy shares of stock selling at $50/share. How many shares can you buy?
You bought 10 shares of GE at $10/share. You sell at $20/share. How much is your profit?
If you have more than 7 years before you need your money, you should...
save
invest
The original amount of money deposited in or invested in an account is called..
Profit
Stock
Principal
CD
An example of a liquid asset is
Money in your savings
A CD
Collectables
A house
Stock is ....
Money in your checking account
A document representing a Load
house by the beach
A share of ownership in a company
Let's say that you invested in a mutual fund that earned 10% interest over 5 years and the rate of inflation was 5% during the same 10 years. What % did you actually earn?
10%
5%
No earnings
I have no idea
Which one is considered an investment? and Why?
A house ( real estate ) because the value increases over time
A boat ( an asset) because its value increases with the market
A truck ( an asset) because its value increases as soon as it is driven off lot
Jewelry ( an asset) because its value stays consistent.
If you were to use the rule of 72 to calculate how many year would it take you to double your money if you had $10000 in a CD at 5% interest. How long would it take?
144
72
5
14.4
