WorksheetsPersonal Finance 5 and 6
Total questions: 35
Worksheet time: 28mins
What is a certificate of debt issued by a corporation or government?
bond
dividend
mutual fund
stock
How long should the money in your emergency fund cover?
one year
eight to ten months
six months
three months
________ interest periods offer more flexibility for depositing and withdrawing money without loss of interest.
Shorter
Simple
Longer
Variable
Which of the following type of valuable goods can be considered an investment?
gemstones
collectibles
precious metals
All of the above.
A SMART goal should be _______.
achievable
mission-specific
successful
temporary
Which type of investment provides an individual with voting rights and receives dividends when declared by the company?
common stock
bond
mutual fund
preferred stock
Spreading risk by putting money in different types of investments is known as _____.
diversification
dollar-cost averaging
variation
risk tolerance
A payroll savings plan (PSP) is another application of which strategy?
pay yourself first
Rule of 72
compounding interest
time value of money
Which form states the total interest earned during a tax year?
Form 1040
Form W-4
Form 1099-INT
Form W-2
In which market do investors purchase securities from other investors rather than from the issuing company?
secondary
new-issues
IPO
primary
Which type of investment is created by pooling the money of many people and investing it in a collection of securities?
common stock
investment club
mutual fund
corporate bond
Which of the following is necessary to use the Rule of 72?
A minimum of 25 years.
An interest rate of 10% or more.
A minimum of $5,000.
A fixed interest rate.
In which market does a company’s initial public offering (IPO) occur?
secondary
new-issues
IPO
primary
Which savings product requires a person to commit his or her money for the longest period of time?
high-yield savings account
passbook savings account
certificate of deposit (CD)
interest-bearing savings account
Investing a fixed dollar amount at regular intervals without regard to the price of the investment at the time you buy it is called:
buy-and-hold investing
net asset value investing
dollar-cost averaging
a dividend reinvestment plan
Interest earned only on the principal.
(a)
Measure of ease with which an asset can be converted into cash without losing value.
(a)
Equation that estimates how long it will take to double an investment with a fixed interest rate.
(a)
Account that requires a deposit of a fixed amount of money for a fixed period of time.
(a)
A collection of investments a person has made is called an investment (a) .
Income that results from selling an asset for more than the purchase price is a(n) (a) .
Purchasing shares in a(n) (a) is a way to invest in real estate without the complications and financial commitment of owning property.
A money market account typically pays a (a) interest rate than regular savings accounts.
An extended period of rising stock prices is a ____________________________ market, while an extended period of falling stock prices is a ____________________________ market.
bull
bear
The (a) is the rate of yearly earnings from an account.
The (a) insures deposits in credit unions up to $250,000.
To calculate the number of years in which your savings will double, divide (a) by the rate of interest.
A(n) (a) is a type of mutual fund that deals only in interest-paying, short-term investments.
The (a) is the amount earned on an investment for a given period of time.
The formula for calculating (a) is principal × rate × time.
You must pay (a) on the interest earned by your savings.
Name one category of stock.
Explain how the time span of a deposit impacts its earnings.
By what factors are investments characterized?
In terms of stock quotes, what is a ticker symbol?
