5 Written questions
5 Matching questions
- track record
- international stock mutual fund
- a contract 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.
- b the past history of something; with investments, look at the five or ten year record.
- c 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.).
- d mutual fund that contains international or overseas companies.
- e a term used to designate all contracts covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange.
5 Multiple choice questions
- 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.
- type of annuity that guarantees a certain rate of return; see annuity.
- mutual fund containing a group of medium-sized companies that are growing.
- 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.
- 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.
5 True/False questions
bond → 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.).
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.
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.
mutual fund → 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.
portfolio → a list of your investments.