Investment Types
What investment is a bank account designed for storing money while earning some interest and allowing regular access?
Savings Account
You need money next month for an unexpected expense. Where should you keep it?
Savings Account
Rank these investments from lowest to highest risk: savings account, CD, penny stock.
Savings account, CD, penny stock
On a balance sheet, where does cash get recorded?
Assets
On an income statement, Dining out and traveling generally fall into this category:
Expenses
What investment requires you to leave money deposited for an agreed period in exchange for a stated interest rate?
Which generally has greater growth potential: a corporate bond or a growth stock?
Growth stock
Rank these investments from lowest to highest risk: savings account, corporate bond, cryptocurrency
Savings account, corporate bond, cryptocurrency
What financial statement reports revenue and expenses over a period?
Income Statement
Credit card debt, student loans, and a mortgage are examples of this.
Liabilities
What investment represents a loan to a company that promises interest payments and repayment of the borrowed amount?
Corporate Bond
Which is the better choice for a 15-year goal: a diversified index fund or a single growth stock?
Index fund
Rank these investments from lowest to highest risk: blue-chip stock, growth stock, penny stock.
Blue-chip stock, growth stock, penny stock
What is the value of assets minus liabilities?
Explain the 50/30/20 rule
50% to wants, 30% to needs, 20% to savings
What investment is designed to follow a market index by holding a broad collection of investments that reflects that index?
Index Fund
Rank these from lowest to highest growth potential: savings account, corporate bond, index fund, growth stock.
Savings, bond, index, growth
Rank these investments from lowest to highest risk for money needed in three months: savings account, index fund, cryptocurrency, penny stock.
Savings account, index fund, cryptocurrency, penny stock
What term describes money earned from work or investments?
Income
Social Security and Medicare taxes are commonly grouped together under this acronym.
FICA
What type of stock represents ownership in a large, established company with a long record of financial stability?
Blue-chip stock
You are 19, have no emergency fund, and want to invest for retirement in 40 years. You also expect irregular income during college. What should come first?
Build emergency savings
Rank these investments from lowest to highest risk for an investor comparing borrower risk and market volatility: CD, highly rated corporate bond, blue-chip stock, cryptocurrency.
CD, highly rated corporate bond, blue-chip stock, cryptocurrency
Someone earns $6,000 per month and has $3,500 of expenses and contributes $1,000 to savings account. What is their net income?
$2,500
You paid $12,000 in taxes over the year, but when doing your return you realized you only owed $10,000. this is what happens with the extra $2,000.
Tax Refund / Return