NAME: ________________________

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of 28 available terms

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5 Written Questions

5 Matching Questions

  1. futures
  2. international stock mutual fund
  3. C.D.
  4. speculative
  5. risk return ratio
  1. a Certificate of Deposit, usually at a bank; savings account with a slightly higher interest rate because of a longer savings commitment (i.e. six months, one year, etc.).
  2. b mutual fund that contains international or overseas companies.
  3. c relationship of substantial reward in comparison to the amount of risk taken.
  4. d a term used to designate all contracts covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange.
  5. e purchasing risky investments that present the possibility of large profits, but also pose a higher-than-average possibility of loss.

5 Multiple Choice Questions

  1. 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.
  2. 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.
  3. quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money; when there is more liquidity, there is typically less return.
  4. 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).
  5. the past history of something; with investments, look at the five or ten year record.

5 True/False Questions

  1. riskdebt 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).

          

  2. annuitycontract 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.

          

  3. growth stock mutual fundmutual fund that seeks to provide max. long-term capital growth from stocks of primarily smaller companies or narrow market segments; dividend income is incidental; the most volatile fund; also referred to as a small-cap fund.

          

  4. mid-cap fundmutual fund containing a group of medium-sized companies that are growing.

          

  5. rental real estatebuying real estate to rent out as an investment.

          

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