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Unit 1 and 2 Review

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What is an example of a public traded company?

a)

X, formerly known as Twitter

b)

Amazon

c)

US Postal Service

d)

The Trump Organization

2.

Which stock market index is located in Japan?

a)

NASDAQ Composite

b)

S&P 500

c)

Dow Jones Industrial Average

d)

Nikkei 225

3.

What does the term "bull market" refer to?

a)

A market trend characterized by rapidly declining stock prices.

b)

A market trend characterized by stable stock prices.

c)

A market trend characterized by rising stock prices.

d)

A market condition where stock prices are unpredictable.

4.

Which of the following countries follow the Nordic Model?

a)

China

b)

Sweden

c)

Hungary

d)

Denmark

5.

Which of the following responses best describes Libertarianism?

a)

Fiscally Conservative, Socially Conservative

b)

Fiscally Liberal,

Socially Liberal

c)

Fiscally Liberal, Socially Conservative

d)

Socially Liberal, Fiscally Conservative

6.

What does the term Sole Proprietorship refer to?

a)

Someone who owns an unincorporated business by himself or herself. However, if you are the sole member of a domestic limited liability company (LLC), you are not a sole proprietor if you elect to treat the LLC as a corporation.

b)

Relationship between two or more people to do trade or business. Each person contributes money, property, labor or skill, and shares in the profits and losses of the business.

c)

A legal entity that is separate and distinct from its owners. Under the law, corporations possess many of the same rights and responsibilities as individuals. They can enter contracts, loan and borrow money, sue and be sued, hire employees, own assets, and pay taxes.

d)

An informal business; such as, a lemonade stand

7.

What is the dividend yield formula?

a)

Dividends Per Share/ Share Price

b)

Share Price/The Amount of Money You Earn

c)

Dividends Per Share x Share Price

d)

Share Price/ Dividends Per Share

8.

What does the term "blue chip stock" refer to?

a)

Stocks that are considered to be very risky

b)

Stocks from companies that are leaders in their industries. These stocks are also known for their stability and reliability.

c)

IPO Stocks (Stocks that just become available to market.)

d)

Stocks that are traded below $5.

9.

What is a Dividend?

a)

The tax you receive after a stock transaction.

b)

Funds that come the selling of government bonds.

c)

The distribution of a company's earnings to its shareholders and is determined by the company's board of directors.

d)

Money that is earned after taxes.

10.

A stock is sold for $200 dollars and the brokerage fee percentage is 10% of the selling price. Please explain how much money the broker makes from the trade?

a)

180$.

b)

20$

c)

190$

d)

40$

11.

What is the name of the tax that is associated with stock trades?

a)

Social Security Tax

b)

Stock Transaction Tax

c)

401-k Tax

d)

Capital Gains Tax

12.

What does the term "dividend yield" refer to?

a)

The total dividends a company owes its shareholders.

b)

The ratio of a company's annual dividends compared to its share price.

c)

The yield of a company's investments in bonds.

d)

The profitability ratio of a company's stock.

13.

What is a "bear market"?

a)

A market condition that is characterized by rising stock prices.

b)

A market condition that is characterized by falling stock prices.

c)

A market with extremely high interests rates

d)

A market dominated by stock splits.

14.

Which Stock (Ticker) Symbol correctly connected to its company?

a)

American Express --> APPL

b)

Netflix --> NFLX

c)

Boeing --> OG

d)

The Trump Organization --> DJT

15.

Who created the book: "The Wealth Nations."

a)

Karl Marx

b)

Thomas Jefferson

c)

Adam Smith

d)

Gerald Ford