WorksheetsFinancial Terms and Definitions - 25 Terms
Total questions: 24
Worksheet time: 12mins
An asset or item that is acquired with the goal of making a profit is called a/an:
investment
liability
expense
revenue
The market value of a company's outstanding shares is calculated by multiplying the current share price by the number of shares outstanding. What is this value called?
Market Capitalization
Net Worth
Book Value
Revenue
An application that allows users to regularly save small sums of money is called a:
Budget Tracker
Savings App
Expense Manager
Investment Platform
A bond, often having tax advantages for individual investors, issued by a state or local government which typically uses the loan to pay for public works to benefit its citizens is called a:
Corporate bond
Municipal bond
Treasury bond
Savings bond
A collection of stocks and/or bonds combined into one fund which will be traded as a unit, typically chosen and actively managed by an 'expert' in exchange for a fee from each investor is called:
Mutual Fund
Stock Portfolio
Bond Index
Exchange-Traded Fund
The second largest stock exchange in the world behind the NYSE is:
NASDAQ
London Stock Exchange
Shanghai Stock Exchange
Tokyo Stock Exchange
The world's largest stock exchange, physically located in New York City, is:
NASDAQ
New York Stock Exchange
London Stock Exchange
Tokyo Stock Exchange
The rate of return that does not account for inflation or taxes is called:
Nominal rate of return
Real rate of return
Effective rate of return
After-tax rate of return
What is a long-term strategy for building wealth by buying investments - typically index funds - and holding them for many years to minimize trading and costs?
Day trading
Swing trading
Buy and hold investing
Short selling
A retirement account, offered in some job sectors or companies, that an employer maintains to give an employee a fixed payout at retirement is called a:
401(k) plan
Pension plan
Roth IRA
Savings account
A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds and ETFs is called a:
Portfolio
Investment Fund
Stock Market
Savings Account
The number of goods and services that money can buy, which can weaken in time due to inflation, is known as:
Purchasing Power
Interest Rate
Gross Domestic Product
Exchange Rate
The ratio of money gained or lost on an investment relative to the amount of money invested is known as:
Net Profit
Return on Investment (ROI)
Gross Margin
Net Worth
The rate of return that accounts for inflation and taxes is called _______.
real rate of return
nominal rate of return
gross rate of return
net rate of return
The degree of uncertainty on how likely the investor is to make money on an investment is known as _______.
risk
profit
interest
dividend
An online wealth management service that provides automated, algorithm-based portfolio management advice without the use of human financial planners is called a _______.
Robo-advisor
Financial Consultant
Investment Broker
Human Advisor
An individual retirement account that allows a person to set aside after-tax income up to a specified amount each year is known as a _______.
Roth IRA
Traditional IRA
401(k)
SEP IRA
A person, company, or institution that owns at least one share in a company is called a _______.
shareholder
debtor
employee
manager
A financial asset, such as a stock or a bond, that can be bought and sold in a financial market is known as a _______.
security
commodity
currency
derivative
An index of 500 large cap companies chosen based on their size, industry, and other factors, used to represent the entire market is called the _______.
S&P 500
Dow Jones Industrial Average
NASDAQ Composite
Russell 2000
A federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals is known as _______.
Social Security
Medicare
Unemployment Insurance
Medicaid
A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company is called a _______.
share
bond
loan
deposit
A market where shares in corporations are bought and sold through an organized system is known as a _______.
stock market
commodity market
real estate market
currency market
A bond, generally considered to be a risk-free investment, issued by the U.S. Treasury with a maturity of more than 10 years is called a _______.
long-term Treasury bond
short-term Treasury bill
municipal bond
corporate bond
