Investing Test
Eliminate, reduce, defer, or adjust the current year tax liability? -answer- Tax Sheltered
Investments
The total return on an investment expressed as a percentage of the amount of money
invested? -answer- Rate of Return
A group of similar stocks and bonds? -answer- Index
The rise in the general level of price? -answer- Inflation
The possibility that an investment will fail to pay the expected return or fail to pay a
return at all? -answer- Investment Risk
The owner of a stock? -answer- Stockholder
Created when a company combines the funds of many different investors and then
invests that money in a diversified portfolio of stocks and bonds? -answer- Mutual
Funds
The current price that a buyer is willing to pay for a stock? -answer- Market Price
The specified time in the future when the principal amount of the bond is repaid to the
bondholder? -answer- Maturity Date
A mutual fund that was designed to reduce fees by investing in the stocks and bonds
that make up an index? -answer- Index Funds
Reduces risk by spreading investment money among a wide array of investment tools?
-answer- Portfolio Diversification
Illustrates the trade offs between risk and return for a number of saving and investing
tools? -answer- Financial Risk Pyramid
The purchase of assets with the goal of increasing future income? -answer- Investing
An individual's general approach to investment risk? -answer- Investment Philosophy
The share of profits distributed in cash? -answer- Dividends
, The danger that money won't be worth as much in the future as it is today? -answer-
Inflation Risk
A form of lending to a company or the government? -answer- Bonds
Have the potential for significant fluctuations in return over a short period of time? -
answer- Speculative Investments
Allows a person to easily calculate when the future value of an investment will double
the principal amount? -answer- Rule of 72
The uncertainty regarding the outcome of a situation or even? -answer- Risk
A share of ownership in a company? -answer- Stocks
Profit or income generated by saving and investing? -answer- Return
Higher risk= -answer- Higher Return
Investments have the potential for ________ returns? -answer- High
All investments have some _________? -answer- Risks
Investments are important to building __________? -answer- Net Worth
Why are investments less liquid than Savings tools? -answer- They cost money to
convert them into cash and it takes more time to convert things into cash.
Investments are for _________ goals? -answer- Long Term
Savings are: -answer- Emergencies
More liquid
Limited risk
Lower returns (0-4%)
Financial security
Investing is: -answer- Long term goals
Less liquid
Higher risks
Higher returns (8-12%)
Net worth
How do you find rate of return? -answer- Total return/amount of money invested=rate
of return.
Eliminate, reduce, defer, or adjust the current year tax liability? -answer- Tax Sheltered
Investments
The total return on an investment expressed as a percentage of the amount of money
invested? -answer- Rate of Return
A group of similar stocks and bonds? -answer- Index
The rise in the general level of price? -answer- Inflation
The possibility that an investment will fail to pay the expected return or fail to pay a
return at all? -answer- Investment Risk
The owner of a stock? -answer- Stockholder
Created when a company combines the funds of many different investors and then
invests that money in a diversified portfolio of stocks and bonds? -answer- Mutual
Funds
The current price that a buyer is willing to pay for a stock? -answer- Market Price
The specified time in the future when the principal amount of the bond is repaid to the
bondholder? -answer- Maturity Date
A mutual fund that was designed to reduce fees by investing in the stocks and bonds
that make up an index? -answer- Index Funds
Reduces risk by spreading investment money among a wide array of investment tools?
-answer- Portfolio Diversification
Illustrates the trade offs between risk and return for a number of saving and investing
tools? -answer- Financial Risk Pyramid
The purchase of assets with the goal of increasing future income? -answer- Investing
An individual's general approach to investment risk? -answer- Investment Philosophy
The share of profits distributed in cash? -answer- Dividends
, The danger that money won't be worth as much in the future as it is today? -answer-
Inflation Risk
A form of lending to a company or the government? -answer- Bonds
Have the potential for significant fluctuations in return over a short period of time? -
answer- Speculative Investments
Allows a person to easily calculate when the future value of an investment will double
the principal amount? -answer- Rule of 72
The uncertainty regarding the outcome of a situation or even? -answer- Risk
A share of ownership in a company? -answer- Stocks
Profit or income generated by saving and investing? -answer- Return
Higher risk= -answer- Higher Return
Investments have the potential for ________ returns? -answer- High
All investments have some _________? -answer- Risks
Investments are important to building __________? -answer- Net Worth
Why are investments less liquid than Savings tools? -answer- They cost money to
convert them into cash and it takes more time to convert things into cash.
Investments are for _________ goals? -answer- Long Term
Savings are: -answer- Emergencies
More liquid
Limited risk
Lower returns (0-4%)
Financial security
Investing is: -answer- Long term goals
Less liquid
Higher risks
Higher returns (8-12%)
Net worth
How do you find rate of return? -answer- Total return/amount of money invested=rate
of return.
