5 Written Questions

1. cost of borrowing money
2. the price at which a share of stock can be bought and sold in the stock market
3. the ease with which an investment can be turned into cash without losing its value
4. if a stock increases in value and is then sold for more than its original cost
5. aka return; the percentage of money earned on a savings account or investment over a year; higher yield = higher risk

5 Matching Questions

1. Securities
2. Exchange Traded Funds
3. Real Estate
4. Collectibles
5. Maturity Date

1. a stocks, bonds and mutual funds; sold by corporations and governments to raise money
2. b items of personal interest to collectors that can increase in value in the future; ancient coins, works of art
3. c land and anything attached to it
4. d due date for a bond
5. e a portfolio of stocks, bonds or other investments that trade on a stock exchange

5 Multiple Choice Questions

1. a certificate representing a promise to pay a definite amount of money at a stated interest rate on a specified due date
   1. Return
   2. Yield
   3. Saving
   4. Bond
2. general ownership in a corporation and a right to share in its profits; one vote per share owned; able to attend shareholders meeting
   1. Preferred Stock
   2. Commodities
   3. Common Stock
   4. Commission
3. a general increase in the value of property that occurs over time
   1. Appreciation
   2. Inflation
   3. Return
   4. Commission
4. profits paid to stockholders as a return on their investment
   1. Saving
   2. Dividends
   3. Yield
   4. Interest
5. the storage of money for future use
   1. Saving
   2. Bond
   3. Yield
   4. Investing

5 True/False Questions

1. Capital Loss → if a stock decreases in value and is then sold for less than its original cost

   True        False

2. Certificate of Deposit → a savings plan that requires funds to be left on deposit for a specific period of time; higher interest rate than savings accounts; penalties for early withdrawal

   True        False

3. Face Value → the amount being borrowed by the corporation issuing the bond

   True        False

4. Return → aka return; the percentage of money earned on a savings account or investment over a year; higher yield = higher risk

   True        False

5. Futures Contract → money from many investors is used to invest in a variety of companies; allows investors to spread out their risk among many investments

   True        False