WorksheetsCCS HS EPF Unit 4 Post
Total questions: 10
Worksheet time: 8mins
Carter bought 10 shares of stock three years ago for 100pershare.Hesoldthemlastweekfor 300 per
share. He received capital gains income of $2,000 as a result of this transaction. Based on the text, which statement summarizes capital gains income?
It is the money an individual receives from interest on an account.
It is the money an individual receives from dividends on an investment.
It is the money an individual receives from renting a property he or she owns.
It is the money an individual receives from sale of an asset that appreciated in value.
[The U.S. Bureau of Economic Analysis]’s personal income statistics show the income that U.S. residents get from paychecks, employer-provided supplements such as insurance, business ownership, rental property, Social Security and other government benefits, interest, and dividends. “Income and Saving” U.S. Bureau of Economic Analysis
Based on the text, which statement summarizes personal income?
Personal income includes the amount an individual receives from employment, investment, and social service programs.
Personal income consists of the amount of money an individual has available in his or her bank account.
Personal income is the amount an individual has after he or she has paid his or her taxes.
Personal income consists solely of the amount an individual earns in the workforce.
This list is missing a title: Title: __________ • earned on investments • can be large or small in value • paid in regular installments • must be included in your income taxes • payments made to stockholders Based on the text, which is the best title for the list?
Forms of Passive Income: Dividends
The Disadvantages of Owning Stock
Forms of Gross Income: Dividends
The Benefits of a Steady Income
A pension plan is an employee benefit plan established or maintained by an employer or by an employee organization (such as a union), or both, that provides retirement income or defers income until termination of covered employment or beyond.
Based on the text, which statement summarizes pension income?
It is the monthly payment the government makes to most retired Americans.
It is a percentage of profits corporations pay to former stockholders.
It is the payment an employer makes to retired employees.
It is the wages employers pay to their current employees.
Beverly and Lloyd inherited some old stock from her grandmother after she passed away. After looking at their finances, they decided to sell the stock and use the money generated from it to pay off some loans. However, they will have to pay a capital gains tax on the money they received from the sale of this stock.
Based on the text, what is capital gains income?
the amount received in an inheritance
the interest earned on a bank account
the profit received from selling an asset
the amount earned from stock ownership
Stocks may fall into one or more of the following categories: Growth stocks have earnings growing at a faster rate than the market average. They rarely pay dividends and investors buy them in the hope of capital appreciation. . . . Income stocks pay dividends consistently. Investors buy them for the income they generate. An established utility company is likely to be an income stock. Value stocks are cheaper to buy. People buy value stocks in the hope that the market has overreacted and that the stock’s price will rebound. Blue-chip stocks are shares in large, well-known companies with a solid history of growth. They generally pay dividends.
Based on the text, which is a similarity in the potential of investment in different types of stocks to build wealth?
All stock investments pay regular dividends.
All stock investments involve an element of risk.
All stock investments provide a source of personal income.
All stock investments are assured to increase in value over time.
Insured Bank Money Market Accounts: These accounts tend to offer higher interest rates than savings accounts and often give you check-writing privileges. As with other bank accounts, many bank money market accounts are insured by the FDIC.
Certificates of Deposit: You can earn higher interest if you put your money in a bank certificate of deposit, or CD, which also is federally insured. When you put funds into a CD, you promise that you’re going to keep your money in the CD for a certain amount of time. Penalties typically apply to early withdrawals.
Based on the text, how are the benefits of investing in a money market account similar to the benefits of investing in a certificate of deposit?
Both provide the option to write checks.
Both are very high risk, but offer high returns.
Both offer higher interest rates than savings accounts.
Both allow the investor to withdraw money at any time.
What is a stock?
A stock is a type of investment that uses money from investors to purchase many different investment types.
A stock is an insured bank account with high risk.
A stock is a lending investment to the government or a company.
A stock is a share of ownership in a company.
________ are loans to a company or government for a set amount of time. They are considered low-risk investments.
Stocks
Bonds
Mutual funds
Deposits
Which investments are pre-tax investments?
Roth IRA
Traditional IRA
401k/403b plan
Whole/Universal Life Insurance
