personal finance

An increases in the value of an investment appreciation
a share in ownership of a corporation stock
a portion of a company’s earnings paid to stockholders dividend
a formal market where securities are bought and sold by stockbrokers securities exchange
a certificate of debt issued by a corporation or government that entitles the holder to a set rate of interest on the face value until it matures bond
an investment created by pooling the money of many people and investing it in a collection of several securities mutual fund
a type of mutual fund that deals only in high interest, short-term investments such as u.s. treasury bills, certificates of deposit, and commercial paper money market fund
the collection of securities and other assets a person owns investment portfolio
spreading risk by putting money in a varsity of investments diversification
a legal document that gives a detailed description of a security prospectus
a contract with an insurance company that provides income for a set period of time or for life annuity
The possessions, such as property, savings, investments, and insurance benefits, a person leaves when he or she dies. estate
A person appointed to carry out the terms outlined in a will. executor
A legal document stating a person’s wishes for his or her estate after death. will
A person or institution named to manage an estate on behalf of the beneficiaries. trustee
A statement of instructions for specific medical treatment if a person becomes unable to make medical decisions. living will
A legal agreement where assets and property are managed by a trustee on behalf of the beneficiaries. trust
The government institution that processes a deceased individual’s will and estate. probate court
T/F investing and saving are the same thing FAlse
T/F high-risk investments often offer the possibility of big gains or big losses TREU
T/F When you buy stock in a corporation, you become part owner of that company TRUE
T/F when you buy a bond the issuer owes you money true
T/F Securities exchanges make trading stocks and bonds difficult. FALSe
T/F Mutual funds offer an opportunity to invest in a variety of securities rather than just the one or two you might be able to afford as a single investor. TRUE
T/F Money market funds invest primarily in foreign currency. FALSE
T/F The rate of interest earned on money market funds is guaranteed for a minimum of one year. False
T/F Real estate is among the safest investments for beginning investors. FALSE
T/F Investing in a REIT is the same as purchasing property. FALSE
T/F An investment portfolio is the collection of stocks, bonds, and other securities a person owns. TRUE
T/F People should be able to take care of all their own investment decisions without the help of professionals. FALSE
T/F Ideally, you will buy investments for the highest price and sell at the lowest price. FASLE
T/F Online brokerage firms are almost always competent and reliable. FALSE
T/F An investment club offers an opportunity to invest on a small scale while learning about investments. TRUE
T/F Social Security is designed to provide the bulk of retirement income for most families. FALSE
T/F IRAs offer consumers the opportunity to make tax deferred contributions to a retirement fund TRUE
T/F An estate is basically everything you own TRUE
T?F A living will is a statement of instructions you wish to be followed if you become unable to make decisions on your own behalf. T
Investing is ________ purchasing a financial product or valuable item to make money
Low-risk investments _________ Yield smaller profits, but offer protection from larger losses
People invest to ________ ALL of the above
Which of the following is not a type of security Real estate
An advantage of owning preferred stock over common stock in a company is ____. a first claim on company assets in case of bankruptcy, after creditors are paid
The face of a bond is the _____ Amount it is worth when it is issued
In the investment world yield refers to the _____ percentage of a return on an investment
Bonds range from safe to risky depending on the _____ Financial soundness of the company
Municiple bonds are issued by state country and city governments
the most actively traded u.s. government bond are ____ treasury bills (T-Bills)
Advantages of investing in a mutual fund include all except ____. Ability to choose stocks for yourself
Growth of savings for retirement depends on ______ all of the above
Vesting is an important part of employer-sponsored retirement plans because it gives employees the legal right to ____. collect the money employers have put into company pension funds in the workers’ names
Taxpayers usually avoid paying taxes on IRA contributions and earnings if they withdraw the funds ____. Only at retirement age
The primary objectives of estate planning include providing for dependents and deciding how one’s estate will be distributed at death
Upon your death you will need a will to dispose of your property and assests according to your wishes
when someone dies without a will property is divided according to state law
The living will is a statement of instructions to be followed if one becomes unable to make decisions

Leave a Reply

Your email address will not be published. Required fields are marked *