Show:
Round 1
Round 2
Round 3
Round 4
Round 5
100
The rise in the general level of prices.
What is inflation
100
The relationship between risk and return in investing can be states as:
What is the higher the risk the higher the return?
100
________ is desirable because it decreases risk by investing money in a variety of investment tools.
What is diversified portfolio?
100
A type of debt that a company issues to investors for a specified amount of time.
What is a bond?
100
Name a type of speculative investment.
What are futures, options, commercial paper, or collectibles?
200
Connor wants to purchase stocks with the money he received from his tax return. Who would he contact to make the transaction?
What is a brokerage firm?
200
Name an example of when the value of a stock can change.
Ex. When a stock split occurs, when the dollar value of a stock increases or decreases, when a merger happens between two companies.
200
Which rule assumes that interest earned is reinvested?
What is the Rule of 72?
200
_________ is associated with a company that is new with a consistent record of relatively rapid growth and earnings.
What is a growth stock?
200
A ____ _____ stock is associated with a company which dominates its respective industry and has a good company management reputation.
What is a blue chip?
300
Name where an investor can assess the health of the economy through research.
What are the Dow Jones Industrial Average, the Standard and Poor's 500 Composite Index, or the NASDAQ?
300
These are greatly influenced by the changes in the economic business cycles.
What are cyclical stock?
300
The numerical measure an investor looks at when determining how well a company's stock is doing is the ______.
What are P/E ratio, Beta, or Book Value?
300
This is another name for an income stock.
What is a counter cyclical stock?
300
Stock analysts use this term for a market which is doing poorly and does not have investor confidence.
What is a bear market?
400
Which of the following is NOT true in regards to investing in stock? A. Depending upon the current market price, stockholders may pay different prices for the same stock. B. A stockholder may or may not receive a dividend. C. A stockholder will always receive a profit when the stock is sold. D. A stockholder owns a part of a company.
What is C. A stockholder will always receive a profit when the stock is sold.
400
Name the primary difference between mutual funds and index funds in regards to the stocks and bonds that create them.
What is mutual funds are chosen by a group of experts whereas index funds are pre-determined by an index.
400
Which of the following statements is true in regards to paying taxes on investments? A. Taxes are often owed on profits generated from investments. B. Taxes are always paid on investments either when the money is placed in the investment or removed from the investment. C. Since investments are considered unearned income, taxes do not have to be paid on earnings. D. Taxes only have to be paid on employer-sponsored investment accounts.
What is A. Taxes are often owed on profits generated from investments?
400
Brian is 56 years old. He is anticipating retirement in the next 10 years. He would like to invest in the stock market. What price/earnings ratio would satisfy Brian's needs? A. 15-25 B. 40-50 C. 7-10 D. The P/E ratio of a company should not affect Brian's choice.
What is C. 7-10?
400
This illustrates the trade-offs between risk and return for a number of saving and investing tools.
What is the financial risk pyramid?
500
Doug invested $2500 into a Certificate of Deposit earning 6.5% interest. How long will it take Doug to double his investment?
What is 72/6.5=11 years?
500
The average Stock Market return since 1926 has been 11%. According to the Rule of 72, how often will an individuals investment double?
What is 72/11=6.5 years
500
Jessica has a balance of $2,200 on her credit card with an 18% interest rate. Her credit card company doesn't require a minimum payment on the balance and doesn't assess any late charges. If Jessica chooses not to make any payments on her outstanding balance, how long will it take for her to balance to double?
What is 72/18= 4 years?
500
Jacob has $5,000 that he has saved from doing odd jobs around the neighborhood. When he graduates from college in four years he would like to have $10,000 to use as a down payment on a new car. If Jacob is going to realize his dream, what interest rate will he have to invest his money at?
What is 72/4= 18%
500
Rhonda is 22 years old and would like to invest $2000 into a U.S. Treasury Note earning 7.5% interest. How many times will Rhonda's investment double before she withdraws it at age 70?
What is 72/7.5=9.6 (Money will double in 9.5 years) 70-22= 48 years 48/9.6= 5 times (her money will double 5 times until she is 70)