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Foundations Digital - Investing and Retirement
Terms in this set (35)
Distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders
Employee benefits packages:
Non-wage compensations provided to employees in addition to their normal wages or salaries
The benefit of diversification in your investments is:
In some cases, employers will match the employee contribution, but you should fund your plan whether your company matches or not. This statement refers to:
A savings plan operated by a state or educational institution designed to help families set aside funds for future college costs
Single stocks and mutual funds carry the same amount of risk.
Securities that represent part ownership or equity in a corporation
Long-term investments, properly diversified, include the following mutual funds:
Growth, growth and income, international, aggressive growth
A list of your investments
You can start investing with a small amount of money.
A young investor willing to take moderate risk for above-average growth would be most interested in:
Company Xʹs board of directors has decided to issue a portion of its earnings to its shareholders. If you own stock in Company X, you can expect to receive a(n):
Which statement is false about liquidity?
Both A and B
If you leave a job and have money saved in your employer's retirement plan, always roll that money into an IRA using a direct rollover, which allows you to avoid taxes and penalties.
A mutual fund portfolio that is properly diversified will have all investment dollars located in just one of four different classes of financial assets.
Savings accounts and money-market accounts are most appropriate for:
Emergency funds and short-term goals
Saving and investing have nothing to do with the amount of money you make.
Relationship of substantial reward compared to the amount of risk taken
A reason that people need to save and invest is to:
Enable their money to make money
Which of the following statements about the stock market is false?
Formed in 1792, the New York Stock Exchange (NYSE) is the smallest organized stock exchange in the United States.
The purpose of war bonds is to finance military operations during war time. The last time the United States issued war bonds was during the Vietnam War
When buying and selling investments, you should not:
Switch your investment strategy often, based on market conditions
If you get into financial trouble, borrowing against your retirement plan is a good option.
A retirement plan found in nonprofit organizations such as churches, hospitals and schools.
Quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money
A savings account sold by an insurance company, designed to provide payments to the holder at specified intervals, usually after retirement.
You should start investing as soon as you have your college education funded.
Federal agency responsible for collecting taxes and for the interpretation and enforcement of the Internal Revenue Code
Internal Revenue Service
Good investment portfolios are extremely complex.
Money markets are great for your emergency fund due to their liquidity and stability.
The government agency responsible for regulating the stock market
Securities exchange commission
Which of the following is a good investment option?
Piece of ownership in a company, mutual fund or other investment
Money that is invested, either tax deferred or tax free, within a retirement plan
To ensure that some of your retirement savings will not be subject to income tax upon withdrawal, you would contribute to:
A Roth IRA
Recommended textbook explanations
Principles of Economics
N. Gregory Mankiw
Gary E. Clayton
Essentials of Investments
Alan J. Marcus, Alex Kane, Zvi Bodie
Krugman's Economics for AP*
David Anderson, Margaret Ray
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