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5 Written questions

5 Matching questions

  1. Will
  2. Stock is...
  3. appointment clause
  4. Why consider bonds?
  5. sinking fund
  1. a a legal document that transfers an estate after death
  2. b names the executor of the will
    appoints guardians for all children under 18 years of age
  3. c a share in the ownership of a company
  4. d Bonds reduce risk through diversification
    Bonds produce steady current income
    Bonds can be a safe investment if held to maturity
  5. e money set aside annually to pay off the bonds at maturity

5 Multiple choice questions

  1. now known as: Coverdell Education Savings Accounts
    Just like Roth IRA
    contributions are limited to $2000 per year/child
    earnings are tax free
    no tax on withdrawals used for education
  2. diversification
    professional management
    minimal transaction costs
    avoidance of bad brokers
  3. invest in both properties and mortgages
    investments result in both capital appreciation and interest income
  4. appoint an executor, if one is not named
    validate the will
    allow for challenges to the will
    oversee distribution of assets
  5. the company cuts the stock price and you get more shares, but retain the same total investment

5 True/False questions

  1. stock spin outwhere a company "splits off" sections of itself as a separate business


  2. Money Market Mutual Fundsgrowth funds
    small-company growth funds
    growth-and-income funds
    sector funds
    index funds
    international funds


  3. sale pricethe company cuts the stock price and you get more shares, but retain the same total investment


  4. Life-cycle fundsare similar to asset allocation funds
    tailor holdings to best meet the needs of investors in a certain stage of the life cycle, such as age or risk tolerance


  5. Dow Jones Industrial AverageBenefit the small investor diversification and reduced risk. Level the playing field between corporations and the individual investor