WorksheetsAdvanced Financial Literacy Unit #1 Test Review Activity
Total questions: 25
Worksheet time: 1hrs 15mins
Set of institutions, such as banks, insurance companies, and stock exchanges, that permit the exchange of funds.
Economic systems
Investment markets
Financial systems
Asset Classes
Individuals or groups with capital to invest, who expect to earn returns.
Entrepreneurs
Investors
Laborers
Intermediaries
“Middlemen” who facilitate financial activity.
Entrepreneur
Investor
Rating Agency
Intermediary
Entrepreneurs and/or project owners who have ideas but need capital to produce future cash flows.
Producers
Investor
Rating Agency
Intermediary
The market for raising capital, where money flows to the producer from the investor.
Primary market
Secondary market
commercial bank
Tertiary market
Check ALL that apply regarding secondary markets?
Securities can be exchanged between investors as much as possible
Provides investors with a flexible time horizon.
Prices are predetermined.
Investors gain or lose profits according to market conditions.
Financial intermediaries who accept deposits from savers, and use these deposits to make loans to businesses and individuals.
Rating agencies
Commercial banks
primary markets
secondary markets
The statement below that would BEST define investing is
keeping what money you put away but adding to it with interest.
money bet on short-term price fluctuations.
putting money to work for a period of time in some sort of project or undertaking in order to generate positive returns.
placing it all in crypto.
____________________ serve mainly as a facilitator and the provider and user of capital face each other.
Investment banks
Rating agencies
Commercial banks
Accounting firms
The period of time one expects to hold an investment until they need the money back.
Time horizon
Risk tolerance
Maturity date
Dividend date
Check ALL that applies with the time value of money.
Sum of money is worth more now than the same sum of money in the future.
Money grows only through investing so a delayed investment is a lost opportunity.
Inflation and investment gains
Risk
______________________ is the degree of risk that an investor is willing to endure given the volatility in the value of an investment.
Time horizon
Risk tolerance
Investment class
Risk and return
Investment rate of return has a ___________ relationship with its level risk.
direct
indirect
inverse
no
Check ALL that apply. Investments with short-term time horizons (1-4 years) that require low risk tolerances include
Money Market Accounts
Savings accounts/CDs
Stocks
Real Estate
An investor with a time horizon of greater than 10 years would MOST LIKELY invest in
only cash instruments.
corporate bonds and stocks.
only bonds.
cash instruments and bonds.
Any resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit is a(n) _________________.
Asset
Liability
Equity
Asset Class
A grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations.
Asset
Asset Class
Liability
Equity
Check all that apply. Equity investments include
Large Cap Stock
International Stock
Corporate Bonds
Mid Cap Stock
Fixed income investments include
Savings and money market accounts.
U.S. Treasury and corporate bonds
Gold and silver
Real Estate
Cash instruments include everything EXCEPT:
Certificates of Deposit
U.S. Treasury Bills
Money Market Accounts
Savings Accounts
Investment goals must be everything EXCEPT:
measurable
attainable
using appropriate investments and resources
aggressive
Commodities include everything EXCEPT:
gold
silver
Bitcoin
Oil
Currencies include everything EXCEPT:
Japanese Yen
EU Euro
Bitcoin
Eurodollars
Which response below would NOT be a financial systems participant?
producer
investor
ratings agency
intermediary
Derivatives include everything EXCEPT:
Futures contracts
Options Contracts
Real Estate Investment Trusts
Mortgage-Backed Securities
