5 Written questions
5 Matching questions
- rental real estate
- risk return ratio
- mutual fund
- a relationship of substantial reward in comparison to the amount of risk taken.
- b piece of ownership in a company or mutual fund.
- c pool of money managed by an investment company and investment company and invested in multiple companies, bonds, etc.; offers investors a variety of goals depending on the fund and its investment charter; often used to generate income on a regular basis or to preserve an investor's money; sometimes used to invest in companies that are growing at a rapid pace.
- d a term used to designate all contracts covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange.
- e buying real estate to rent out as an investment.
5 Multiple choice questions
- mutual 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.
- degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit.
- type of annuity that guarantees a certain rate of return; see annuity.
- account or arrangement in which one would put their money for long-term growth; should not be withdrawn for a suggested minimum of five years.
- the past history of something; with investments, look at the five or ten year record.
5 True/False questions
diversification → 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.
international stock mutual fund → mutual fund that contains international or overseas companies.
mid-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.
C.D. → 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.).
bond → 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).