WorksheetsSaving, Investing, and Risk Management
Total questions: 41
Worksheet time: 21mins
What does smart money management include?
Saving a portion of your income and making wise long-term investments.
Spending all your income on luxury items.
Avoiding any form of budgeting or planning.
Relying solely on credit cards for daily expenses.
What is the term for the following definition? An IOU issued by a company, municipality, or the federal government in exchange for a loan from an investor that will be repaid with a set rate of return.
bond
stock
dividend
mutual fund
What is the term for the following definition? A business that provides money-related services.
financial institution
retail store
manufacturing plant
technology startup
What is the term for the following definition? A fee received or paid for the use of money.
interest
dividend
commission
premium
What is the term for the following definition? To commit money to gain a profit or earn interest.
invest
borrow
spend
donate
What is the term for the following definition? To automatically save a specified amount from a paycheck for future use.
Pay Yourself First (PYF)
Direct Deposit
Overdraft Protection
Credit Utilization
What is the definition of 'mutual fund'?
A collection of stocks or bonds of various corporations
A type of insurance policy for individuals
A government-issued currency note
A loan given to a business by a bank
What is the definition of 'opportunity cost'?
The next best alternative given up when making a financial choice
The total amount of money spent on a purchase
The profit earned from an investment
The amount of money saved in a bank account
What is the definition of 'principal'?
The amount of money originally invested
The interest earned on an investment
The total amount after interest is added
The annual percentage rate
What is the definition of 'risk'?
The possibility of financial loss or physical harm
A guaranteed way to make a profit
A type of insurance policy
A method to eliminate all uncertainty
What is the definition of 'savings account'?
An interest-bearing account where people put money for future use
A type of loan given by banks to customers
A credit card used for daily purchases
A fixed deposit account with no withdrawals allowed
What is the definition of 'stock'?
A share of a corporation sold to the public
A type of government bond
A form of physical inventory in a warehouse
A loan given to a business by a bank
Fill in the blank: The higher the ________ rate, the more you can save according to the saving formula.
interest
inflation
tax
spending
What is opportunity cost?
The money you save every month
The value of what you give up when you make a choice
The interest you earn on savings
The amount you spend on entertainment
According to the example, if you spend $20 on a movie and popcorn, what do you give up?
You give up the ability to put $20 in your college fund.
You get a free movie ticket.
You gain extra money for shopping.
You receive a gift card for snacks.
Having a savings goal means ________.
making choices
spending more money
ignoring your finances
avoiding all expenses
Which of the following is a type of saving option?
Savings accounts and CDs
Credit cards
Car loans
Mortgages
Which of the following is NOT a saving option listed in the diagram?
Money Market
Bonds
Stocks
Credit cards
Fill in the blank: ________ is a saving option that involves pooling money with other investors to purchase a collection of stocks, bonds, or other securities.
Mutual funds
Savings account
Certificate of deposit
Individual retirement account
Which saving option is typically associated with company ownership?
Bonds
Mutual funds
Stocks
Savings accounts and CDs
Generally, the shorter the time window, the ______ the return. Fill in the blank.
smaller
larger
constant
unpredictable
Which of the following is a short-term investment option?
Bonds
Savings account
Stocks
Mutual funds
Which of the following is a short-term investment option?
Certificates of deposit
401(k) retirement account
Mutual funds
Bonds
Which of the following is a short-term investment option?
Money market account
Stocks
Bonds
Mutual funds
Which of the following is a long-term investment option?
Savings account
Certificates of deposit
Bonds
Money market account
Which of the following is a long-term investment option?
Stocks
Savings account
Certificates of deposit
Money market account
Which of the following is a long-term investment option?
Mutual funds
Savings account
Certificates of deposit
Money market account
Which of the following is a long-term investment option?
401(k) retirement account
Savings account
Certificates of deposit
Money market account
According to the image, what must a smart investor do when considering investments?
Ignore risks and focus on rewards
Evaluate and weigh both risks and rewards
Only consider rewards
Only consider risks
What is the risk of loss of principal for a Savings Account?
Low: insured
High: not insured
Moderate: partially insured
Very high: no insurance
Which type of account is insured and has a low risk of loss of principal?
Savings Account, Certificates of Deposit (CDs), Money Market Account
Stocks and Bonds
Cryptocurrency Wallet
Mutual Funds
Fill in the blank: ________ is money paid out of pocket before insurance covers the remaining costs.
deductible/co-pay
premium
claim
beneficiary
Fill in the blank: An ________ is a contract that outlines coverage plans and protects a person against financial loss or damage.
insurance policy
rental agreement
warranty card
credit report
Fill in the blank: A ________ is the amount paid for an insurance policy.
premium
deductible
beneficiary
claim
Fill in the blank: ________ is the possibility of financial loss or physical harm.
risk
profit
guarantee
security
Which type of insurance is designed to offer liability protection and property coverage for theft and fire?
Home (or rental) insurance
Life insurance
Health insurance
Auto insurance
Which type of insurance pays for medical bills and prescriptions?
Health insurance
Auto insurance
Homeowners insurance
Life insurance
Which type of insurance offers protection for cars and drivers?
Auto insurance
Health insurance
Home insurance
Life insurance
Which type of insurance pays for visits to a dentist and dental care?
Dental insurance
Life insurance
Auto insurance
Homeowners insurance
Which type of insurance pays a benefit to survivors in the case of death?
Life insurance
Health insurance
Auto insurance
Homeowners insurance
Which type of insurance replaces a lost or damaged phone?
Phone insurance
Car insurance
Health insurance
Travel insurance
