5 Written questions
5 Matching questions
- single stocks
- rental real estate
- fixed annuity
- international stock mutual fund
- a mutual fund that contains international or overseas companies.
- b 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).
- c Securities that represent part ownership or equity in a corporation, wherein each share is a claim on its proportionate stake in the corporation's assets and profits, some of which may be paid out as dividends.
- d buying real estate to rent out as an investment.
- e type of annuity that guarantees a certain rate of return; see annuity.
5 Multiple choice questions
- degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit.
- purchasing risky investments that present the possibility of large profits, but also pose a higher-than-average possibility of loss.
- 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.
- annuity that has a varying rate of return based on the mutual funds in which one has invested.
- funds comprised of large, well-established companies.
5 True/False questions
growth stock mutual fund → fund that buys stock in medium-sized companies that have experienced some growth and are still expanding; also called a mid-cap fund.
savings account → accounts at financial institutions that allow regular deposits and withdrawals. The minimum required deposit, fees charged, and interest rate paid varies among providers.
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.
mutual fund → mutual fund containing a group of medium-sized companies that are growing.
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.