Investments
A security that represents part ownership of a company is called a(n)_______ .
A. Stock
B. Bond
C. Mutual Fund
D. Money Market
A. stock
TRUE OR FALSE: Usually, the more liquid an asset is (like cash in the bank), the less return you can expect.
TRUE
__________ is the process of figuring out how much money you'll need in retirement and creating a plan to get there.
A. Stock planning
B. Savings
C. Retirement Planning
D. Mutual Fund
C. retirement planning
TRUE OR FALSE: When you're retired, you'll still have to pay taxes.
A financial market that trades shares of ownership of public companies.
A. Bond market
B. Retirement market
C. Stock market
D. Bank market
C. stock market
With this investment, you are contributing to a pool of money that will be invested in a mix of stocks, bonds, and money market accounts
A. Stock
B. Bond
C. Mutual Fund
D. Money Market Account
C. mutual fund
When you buy a bond, you're basically doing what with your money?
A. Lending your Money
B. Giving it away
C. Saving it
D. Paying taxes
A. lending your money
Social Security benefits are meant to supplement your ______________?
A. Life
B. Income
C. Time
D. Work
B. income
TRUE OR FALSE: It's okay to borrow money from your retirement account, but don't borrow money to invest in it.
FALSE
TRUE OR FALSE: Before you invest, you should make sure a mutual fund has done well for 5-10 years.
TRUE
This type of market describes a declining market and a receding economy.
A. Bull
B. NYSE
C. Bear
D. NASDAQ
C. Bear
A ______market is when the stock market is rising and the economy is booming
A. Bull
B. Stock
C. Credit
D. Bear
A. Bull
TRUE OR FALSE: When using a Roth plan, you invest your money after paying taxes, and the investment grows tax-free.
TRUE
Social Security benefits are only meant to replace about ______% of your income from when you were working
A. 40%
B. 100%
C. 10%
D. 25%
A. 40%
A type of savings account with a slightly higher interest rate because they have a longer savings commitment, like six months. You will be penalized if you withdraw the money early.
A. Bond
B. Money Market
C. Stock
D. Certificate of Deposit (CD)
D. Certificate of Deposit (CD)
Investing your money earns you more money because of ____________ growth.
A. Continuous
B. Compound
C. Collective
D. Corrective
B. compound
TRUE OR FALSE: When you invest, your goal is to earn a negative rate of return on investment.
FALSE
When using this type of retirement plan, you invest your money after paying taxes, and the investment grows tax-free.
A. Roth IRA
B. 401k
C. 403b
D. Traditional IRA
A. Roth IRA
Roth IRA, 401(k), and 403(b) are all examples of what?
A. Stocks
B. Bonds
C. Retirement plans
D. Mutual funds
C. Retirement plans
A type of savings account with a slightly larger interest rate than a regular savings account. Has check writing ability.
A. Savings Account
B. Money Market Account
C. Checking Account
D. Bond Account
B. Money Market Account
This reduces your risk by using a mix of investment types in your portfolio.
A. Dividend
B. Savings Account
C. Stock Market
D. Diversification
D. diversification
The three components of compound growth are money, ___________ and rate of return.
A. Patience
B. Time
C. Luck
D. Technology
B. time
With a 401k, when do you pay the taxes?
A. When you put the money in the account
B. When you take the money out
C. When you use the money to buy something
B. when you take the money out
A qualified retirement savings plan offered by a company to its employees who contribute money from their gross pay
A. Roth 401k
B. Traditional 401K
C. Roth IRA
D. Mutual Fund
B. Traditional 401k
This is a qualified retirement savings plan similar to a 401(k), but it is offered by nonprofit organizations, such as churches, hospitals, schools, and some government organizations.
A. 403b
B. 401k
C. Roth IRA
D. Roth 401k
A. 403b