WorksheetsUnderstanding Investment and Stock Concepts
Total questions: 46
Worksheet time: 22mins
Putting your money where it can grow
Spending
Investing
Borrowing
A share in the company
Dividends
Stock
Market
The amount of money paid by the company to its shareholders
Stocks
Dividends
Brokers
The type of stock that is least prioritized when declaring dividends and mostly profits through price appreciation
Preferred Stock
Growth Stock
Common Stock
The type of stock that is first prioritized when declaring dividends
Growth Stock
Preferred Stock
Common Stock
The potential of either gaining profits or losing your capital
risk
dividends
stocks
People who invest their money with the expectation of gaining returns over a longer timeframe
traders
investors
brokers
People who buy and sell stocks to earn from price growth over a shorter timeframe
traders
investors
agents
Where investors or traders buy and sell company shares
wet market
stock market
grocery store
Firms or individuals who are licensed to execute the buy and sell orders in exchange for a commission fee
brokers
bankers
merchants
An agreement to lend money to a borrower for a period of time for which you will be paid interest.
allocate
interest
bond
maturity
Using your money in a venture where the possibility of loss is greater.
high-risk investment
bond
low-risk investment
money market
A fee charged for borrowing money.
allocate
interest
bond
stock
Using your money in a venture that has a lower risk of loss.
interest
certificate of deposit
low-risk investment
maturity
The date on which a bond investor can receive the initial investment.
venture
stock
interest
maturity
What calculation should you do to answer the question:
How many years will it take $900 to double if the interest rate is 2%?
72 divided by 2
900 divided by 2
2 divided by 100 times 900
A quick way to estimate how long it takes for your money to double is called...
rule of 72
compound interest
simple interest
inflation
When interest is added to the balance each year and the new balance is used to calculate the interest for the next year is called...
simple interest
compound interest
rule of 72
inflation
Which of the following is the formula for the Rule of 72?
Time Divided by 72 Equals the Interest Rate
72 Divided by Interest Rate Equals the Time to double your money
Interest Rate Multiplied by 72 Equals the time to double your money
Your money deposit divided by 72 Equals the time to double your money
Which investment/savings tool would yield the most interest back to you?
Savings account
Bonds
Certificates of Deposit
Stocks
Which of the following investment(s) is/are best suited to double up your money in the least amount of time?
Mutual Funds
Stocks
Certificates of Deposit
Savings Accounts
Checking accounts
If I invest $20,000 in a Certificate of Deposit that pays 3% interest, how many years till I double up my money?
5
12
24
36
What calculation should you do to answer the question:
How many years will it take $900 to double if the interest rate is 2%?
72 divided by 2
900 divided by 2
2 divided by 100 times 900
A quick way to estimate how long it takes for your money to double is called...
rule of 72
compound interest
simple interest
inflation
When interest is added to the balance each year and the new balance is used to calculate the interest for the next year is called...
simple interest
compound interest
rule of 72
inflation
Who is the creator of the Rule of 72?
Lieutenant Commander Cruz
Bill Gates
Elon Musk
Albert Einstein
Which of the following is the formula for the Rule of 72?
Time Divided by 72 Equals the Interest Rate
72 Divided by Interest Rate Equals the Time to double your money
Interest Rate Multiplied by 72 Equals the time to double your money
Your money deposit divided by 72 Equals the time to double your money
Which investment/savings tool would yield the most interest back to you?
Savings account
Bonds
Certificates of Deposit
Stocks
Which of the following investment(s) is/are best suited to double up your money in the least amount of time?
Mutual Funds
Stocks
Certificates of Deposit
Savings Accounts
Checking accounts
If I invest $20,000 in a Certificate of Deposit that pays 3% interest, how many years till I double up my money?
5
12
24
36
What interest rate is required to double $4,000 in 9 years?
7%
9%
10%
8%
