Types of Investments
Why should you use investment accounts?
Investing is an effective way to put your money to work and build wealth.
Anyone can open a Roth IRA (Above 18), True or False?
True
What is the difference between a 401k and 403b.
A 403b is for public employees and 401k is for private sector employees.
Common stock is...
The stock that normal/common people buy.
Name one tool the Federal Reserve uses to control money in the United States.
Reserve Requirement
Discount Rate
Selling/Buying of Bonds
This account is only for public employees...
What is a 403b
What does IRA stand for?
What is individual retirement account.
In which account does the employer match contributions?
What does "IPO" stand for?
"Initial Public Offering"
What is the difference between "Nominal" and "Real" GDP?
Real GDP factors in inflation.
These accounts are primarily for private sector employees...
What is a Roth IRA or 401k
When do you pay taxes for a Roth IRA?
Upon putting money into the account.
Why might someone choose a 401k over Roth IRA?
The interest accrued over time will be higher than the taxes upon withdrawl.
What is a dividend?
A sum of money paid to shareholders for having stock.
At all times, the Federal Reserve must have a certain percentage of money set aside that cannot be loaned. This is called the?
Reserve Requirement
This account is used for educational purposes only...
What is a 529 Plan
What is a Roth IRA better for in a tax sense?
When you think your marginal taxes will be higher than they are right now.
When do you pay taxes for a 401k/403b?
Upon withdrawal of funds.
What are the two places stocks can come from?
IPO's or Stock Dividends
What is the difference between frictional unemployment and structural unemployment?
Frictional unemployment occurs because of leaving jobs, whereas structural occurs because people lack ability or modernization.
Name the four most popular investment accounts
What is,
- Roth IRA
- 401k/403b
-529 Plan
- Bonds
The maximum contribution for a Roth IRA for people above the age of 50 is?
What is $7,000
What advantage do 403bs have over 401ks?
Funds are vested faster in a 403b.
What is the difference between established and growing companies when it comes to stock?
Established companies will give out cash dividends, while growing companies will give out more stock to shareholders.
Please name the four characteristics of money.
Must be accepted as payment
Must be portable
Must be divisible
Must hold its value reasonably well