Because of this it takes more money to buy the same goods and services.
What is inflation?
100
The right to buy or sell a commodity or stock for a specific price within a given time period.
What is an option?
100
This is the safest type of bond and usually carries the lowest interest rate.
What is municipal bond?
100
This type of mutual fund would be considered most risky.
What is growth fund?
100
Using the Rule of 72, how long will it take for $5,000 to double at 6%.
What is 12 years?
200
The more your are willing to take, the greater the potential return.
What is risk?
200
The only stock that comes with voting rights
What is common stock?
200
The increase in a stock or bond over a period of time.
What is a capital gain?
200
The market price for a share of a mutual fund.
What is net asset value (nav)
200
If you buy a $10,000 bond at face value, and the bond pays $450 annual interest what is the yield on this bond.
What is 4.5%
300
The least safe and the least liquid type of investment.
What are collectibles?
300
How much money stock is bought and sold for.
What is market price?
300
The amount a bondholder will be paid at maturity.
What is face value?
300
Wheat, corn, cattle, and metals such as gold and silver.
What are commodities?
300
The face value of a corporate bond is $5,000 is 6%. The tax on interest earned is 28%. What is the net annual interest earned on the bond?
What is $216
400
The use of long-term savings to earn a financial reward.
What is investing?
400
The face amount of the stock that is used to calculate preferred stock dividend.
What is par?
400
When a bond issuer cannot meet its bond obligations.
What is bond default?
400
True of false: Real estate is one of the most "liquid" investments that you can make.
What is false?
400
Suppose the value of all the stocks in a fund's portfolio is currently $500,000. The fund has $450,000 in liabilities and has sold 2,500 shares to its fund investors. Find the NAV.
What is $20
500
Maximization of return in the next five to ten years.
What is strategic investing?
500
The sales charge paid to a broker when you sell an investment.
What is a back-end load?
500
The primary characteristic of a municiple bond.
What is tax-free?
500
True or false: Collectibles usually increase in value quickly and are easy to sell.
What is false?
500
You buy a 6% corporate bond. The face value is $5,000, but you buy the bond at 92. What is the yield on this bond?