WorksheetsInvesting for Retirement Unit Final
Total questions: 15
Worksheet time: 8mins
What does it mean to retire?
Stop earning money completely
Stop working and live off savings and investments
Stop paying taxes
Stop spending money
What is the primary source of income for most retirees?
Part-time work
Investments, savings, and benefits
Lottery winnings
Family support
Which statement about Social Security is TRUE
It replaces your entire income
It is funded by sales taxes
It replaces only part of your income
It is available only for government workers
What risk does Social Security face by the 2030s?
Higher benefits
Depletion of trust fund reserves
Elimination of payroll taxes
Automatic increases in retirement age
Why can’t most Americans rely solely on Social Security?
It’s optional
It replaces only a portion of your income
It’s only for wealthy individuals
It’s not guaranteed to be paid monthly
What is an actively managed fund?
A fund that copies a market index
A fund run by professionals selecting investments
A savings account with interest
A government-run pension
What is a passively managed index fund?
A fund that mimics a specific market index
A fund that invests in real estate
A government bond fund
A high-risk stock fund
What is the main advantage of index funds?
Higher taxes
Lower operating expenses
Unlimited contributions
Guaranteed returns
What is an expense ratio?
The percentage of profit paid in taxes
Fees charged to manage mutual funds
A measure of inflation
The ratio of gains to losses
Compared to actively managed funds, index funds typically have:
Higher risk
Higher fees
Lower fees
No fees
Mutual funds are traded:
Any time the market is open
Only once per day
Only on weekends
Only by institutions
Stocks and ETFs are traded:
Only at night
Only once a week
While the market is open
Only through banks
What does ETF stand for?
Exchange Trust Fund
Equity Transfer Fund
Employer Tax Fund
Exchange-Traded Fund
ETFs can generate returns through:
Buying high and selling low
Dividends and price appreciation
Tax deductions
Government subsidies
What makes ETFs flexible for investors?
They can be sold in fractional shares
They are risk-free
They are government guaranteed
They only invest in bonds
