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Investing- Dave Ramsey

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

CD and money market accounts are both examples of investments with _______ risk and ______ returns

a)

low; low

b)

low; high

c)

high; high

d)

high; low

2.

When you are investing in a mutual fund, you are contributing to a pool of money that will be..

a)

given to hundreds of charities in your area

b)

invested in a mix of stocks and bonds

c)

taxed based on each individual investor's annual salary

d)

put into a separate savings account for your children to inherit

3.

refers to the monetary gain or loss of an investment over time

a)

ROY

b)

IRA

c)

IRO

d)

ROI

4.

when your investments are well diversified, your risk level is _______

a)

high

b)

low

c)

aggressive

d)

moderate

5.

mutual funds are less risky and can outperform the stock market because...

a)

they are not diversified

b)

they guarantee a high rate of return

c)

they are fully liquid

d)

they invest in several companies at once

6.

the practice of dividing the money a person invests among different types of investments in order to lower risk

a)

portfolio

b)

diversification

c)

stock market

d)

multual fund

7.

a legal document listing how a person wants their assets distributed after their death

a)

will

b)

portfolio

c)

diversification

d)

beneficiary

8.

What is the 5th foundation?

a)

build wealth and give

b)

pay cash for a car

c)

pay cash for college

d)

save for retirement

9.

usually the more liquid an asset, the less return you can expect.

a)

True

b)

False

10.

a retirement savings plan offered by an employer to its employees who contribute money from their gross pay

a)

IRA

b)

Roth IRA

c)

mutual fund

d)

401(k)

11.

a distribution of net profits of a company to its shareholders

a)

investing

b)

stock

c)

dividend

d)

liquid asset

12.

investing your money earns you more money because of

a)

checking accounts

b)

mortgage payments

c)

compound growth

d)

short-term savings

13.

the three components of compound growth are money, time and _______

a)

a large paycheck

b)

retirement

c)

investments

d)

rate of return

14.

_______ is the process of figuring out how much money you will need in retirement and creating a plan to get there

a)

investment banking

b)

outrageous generosity

c)

retirement planning

d)

retirement accounting

15.

Roth IRA, 401(k), 403(b), 457 and SEP are all examples of

a)

tax forms

b)

mutual funds

c)

retirement plans

d)

investment bankers

16.

A security that represents part ownership of a company

a)

bond

b)

stock

c)

CD

d)

Annuity

17.

______ is the key when it comes to compound growth.

a)

time

b)

money

c)

attitude

d)

Roth IRA

18.

never invest your money in _______ because they are very risky.

a)

CDs

b)

mutual funds

c)

single stocks

d)

real estate

19.

which of the following retirement plans often come with employer matching?

a)

Roth IRA

b)

401(k)

c)

traditional IRA

d)

annuities

20.

a financial market that trades shares of ownership of public companies

a)

IRA

b)

mutual fund

c)

liquid asset

d)

stock market