5 Written Questions
5 Matching Questions
- rental real estate
- international stock mutual fund
- track record
- a mutual fund that contains international or overseas companies.
- b a food, metal, or fixed physical substance that investors buy or sell, usually via future contracts.
- c degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit.
- d buying real estate to rent out as an investment.
- e the past history of something; with investments, look at the five or ten year record.
5 Multiple Choice Questions
- distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders; generally distributed in the form of cash or stock.
- account or arrangement in which one would put their money for long-term growth; should not be withdrawn for a suggested minimum of five years.
- debt instrument where an issuer such as a corporation, municipality or government agency owes you money; a form of I.O.U.; the issuer makes regular interest payments on the bond and promises to pay back or redeem the face value of the bond at a specified point in the future (the maturity date).
- mutual fund containing a group of medium-sized companies that are growing.
- accounts at financial institutions that allow regular deposits and withdrawals. The minimum required deposit, fees charged, and interest rate paid varies among providers.
5 True/False Questions
fixed annuity → contract sold by an insurance company, designed to provide payments to the holder at specified intervals, usually after retirement; the holder is taxed at the time of distribution or withdrawal, making this a tax-deferred arrangement.
futures → a term used to designate all contracts covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange.
money market → mutual fund that seeks to maintain a stable share price and to earn current income by investing in interest-bearing instruments with short-term (usually 90 days or less) maturities.
small-cap fund → mutual fund that invests in companies whose market value is less than $1 billion; largely consists of smaller, more volatile companies; also called aggressive growth stock mutual fund.
risk return ratio → to spread around one's investment dollars among several different classes of financial assets and among the securities of many issuers; results in lowered risk.