Stocks
Bonds
Retirement Savings
Capital Gains Tax
Income Tax
100
If you own a stock, you own:
a. An asset insured by the Government
b. Part of a company
c. A retirement savings plan
d. A debt owed to the Government
b
100
A treasury bond is a:
a. An asset insured by the Government
b. Part of a company
c. A retirement savings plan
d. A debt owed to the Government
A
100
Why should you use a retirement savings plan?
Tax advantages
100
Give an example of something that will accrue Capital Gains Tax.
A stock that goes up in value
A company sold for a profit
A house sold for more than you bought it for
100
Give an example of something you might need to pay income tax on.
Salary
Earnings from job
200
True or false: a company with higher stock prices is almost always more profitable than a company with lower stock prices.
False
200
Give an example of something a town might issue municipal bonds to pay for.
Roads, schools, construction
200
What happens if you try to take money out of a retirement account early?
It gets taxed heavily
200
I purchased $1,000 of stock and sold it the next day for $995. How much will I owe in capital gains tax? (In my tax bracket, any gains should be taxed 10%).
$0
200
True or false: Earning $1 more could cost you thousands of dollars in income taxes if it pushes you up into the next tax bracket.
False
300
What do you expect to happen to the price of Nintendo stock when they announce a new console?
What would happen to the stock market as a whole?
Nintendo goes up, market is mostly unaffected
300
True or false: A 10-year bond can be sold before the 10-year term is up.
True, but typically not for full price
300
Match each description to its name:
401k Roth IRA
1. Avoids income tax but you pay capital gains tax
2. You pay income tax but not capital gains tax
1 401k
2 Roth IRA
300
John needs $1,000,000 to buy a new house. After some smart investing, all $50,000 of his savings turned into $1,000,000 in just 5 years. Wow! However, John cannot afford his house. Why not?
Capital gains tax will take some of his $1,000,000
300
Based on the theory of marginal utility, who would value $1 more, Elon Musk or Mr. Thomas?
Mr. Thomas
400
What do you expect to happen to the price of Apple stock if the unemployment rate goes up across the USA?
What would happen to the stock market as a whole?
Apple stock goes down, stock market goes down
400
You find a bond with a 35% interest rate. Why might you not want to buy it?
It is likely to default. You will get nothing
400
If your employer offers a "50% match on all 401k contributions up to $10,000", and you contribute $20,000 to your 401k this year, how much total money goes into your account?
$25,000
400
John purchased $100,000 in Nintendo stock 11 months ago. His investment has grown since then, but he fears Nintendo's stock price may start to go down. Why might he want to wait another month before selling?
(I need the vocab term)
"Long-Term Capital Gains Tax"
He gets taxed less!
400
True or false: John and Brendon work at the same company, but John has a higher salary. Because John makes more money, he will always have more money left over after paying income taxes.
True
500
Why does the stock market temporarily decline each time a new president is elected? (I need 1 specific word)
Instability
500
You buy a 1-year bond with a 10% interest rate for $100. Halfway through the year, national interest rates rise to an average of 15%. How much will your bond pay?
$110
500
What do pensions do?
(Most non-government jobs don't have them anymore)
They pay you a set amount every year from when you retire until you die
500
In 2025, Greg sells a business he owns for $25 million. Looking over his past business expenses, he seems to have invested $15 million in the company over its lifetime. In 2025, he also sells a bunch of stock at a net $50,000 loss, gains $10,000 from bonds paying out, and spends $100,000 on his gym membership and meals out with his family. In total, how much money will Greg have to pay Capital Gains Tax on?
$9,960,000
500
Using the following tax bracket, how much income tax would someone making $50,000 owe?
$6,000