Unit 3 Study Guide
1. The uncertainty of the outcome of any given situationHide answers
Something Magical
guess
RiskX
Mystery
2. How quickly an asset can be converted to cashHide answers
Stock
Making it rain
investment
LiquidityX
3. Share of ownership in the assets of a companyHide answers
stockX
Dow Jones
Principal
Inflation
4. The original amount of money invested or savedHide answers
Retirement
principalX
Savings Account
Interest rates
5. Which of the following is not a stock indicatorHide answers
S&P 500
NASDAQ
P/E RatioX
Dow Jones
6. The Rule of 72 calculates the amount of time it will take for your investment to double usingHide answers
Interest rates
Compounding InterestX
Simple Interest
a calculator
7. rising stock prices indicates the market is in aHide answers
Moose Market
Bull MarketX
Farmers Market
Bear Market
8. Shares purchased in a large, professional managed pool of investmentsHide answers
Typical Stock
Certificate of Deposit
Mutual fundX
Checking Account
9. Money paid out/received in the future doesn't equal money paid todayHide answers
Bills
Maturity
The Money that one earns
Time Value of MoneyX
10. Refers to the general rise in the level of prices of goods and commoditiesHide answers
Dalmatian
Transportation
InflationX
Deflation
11. The spreading of risk and not putting all your eggs into one basketHide answers
Time Value of Money
DiversificationX
Secure
Limit
12. 3 factors affecting time value calculations areHide answers
Principal, Time, Interest RateX
None of the above
Time, Year, Interest Rate
Larry, Moe, Curly
13. Tool used to transfer funds to make a cash purchaseHide answers
Checking AccountX
Savings Account
Car Loan
Liquidity
14. Which of the following is theleastliquid investment optionHide answers
Cash
Savings Account
Money Market Account
A purchased HouseX
15. APR stands forHide answers
Annual Productive Rewards
Annual Percentage RateX
Automobiles, Planes, Row Boats
Artistic Percentage Rate
16. The higher the RISK the Higher the ______Hide answers
RewardX
Consequences
Kite
Responsibility
17. What is a technique for estimating the number of years required to double your moneyHide answers
Rule of Hancock
72 Multiplied by your age
Rule of 72X
Fremont Rules
18. When your employer puts your paycheck into your bank accountHide answers
Direct Democracy
Benefits
Certificate of Deposit
Direct DepositX
19. Insurance that covers deposits in commercial banksHide answers
Federal Deposit Insurance Corporation (FDIC)X
Allstate
Federal Reserve
Federal Insurance Company
20. Joe invests $5,000 into a CD account that earns 6% interest. How long will it take to double?Hide answers
18 years
5 years
2 years
12 yearsX
21. Jeremy has invested $10,000 into a money market account, at 4%, how long until it doublesHide answers
18 yearsX
14 years
12 years
21 years
22. What is the 70/20/10 ruleHide answers
Spend 10%, Invest 70% Save 20%
Invest 20%, Save 10% Spend 70%
Spend 70%, Save 20%, Invest 10%X
Spend 20%, Give away 70%, Save 10%
23. Low risks indicates ______Hide answers
low interest rate
luau
Low returnX
Below sea level
24. The amount of money that is either gained or lostHide answers
interesting
interestX
gambling
luck
25. If your net income is greater than your expenses,then you haveHide answers
cash surplusX
reason to go shopping
outstanding debt
expense reports
26. Plastic cards wired to a checking account are known asHide answers
EFT Cards
PIN
Debit CardsX
Credit Cards
27. A number that confirms an individual's identity with regards to their accounts is called aHide answers
Phone number
PINX
Library Card
Credit Union authorization card
28. defined contribution plan where an employee can make contributions from paycheck for retirementHide answers
Direct deposit
Savings Plan
401(k)X
Taxes
29. What type of insurance covers Credit UnionsHide answers
NCAA
NAAP
NBA
NCUAX
30. When the stock market is doing poorly, the market is in aHide answers
bear marketX
silverwolf market
moose market
bull market
31. what type of account has acombination of savings/investment optionsHide answers
Savings Account
Money market accountX
Credit card
CD account
32. Jimmy is 24 and wants to invest $3000 into a Roth IRA earning 4%. How much would he have at 60?Hide answers
$6,000
$24,000
$12,000X
$18,000
33. Retirement Plan that offers tax-free growth, no taxes on withdrawal at retirement?Hide answers
Gross pay
Roth IRAX
Social Security
Trust will
34. Specific amount policy holder pays before insurance kicks in?Hide answers
Premium
Co-Pay
DeductibleX
Health Insurance
35. Legal responsibility to pay the costs of damages, injuries/property. Auto Insurance required.Hide answers
Probability
LiabilityX
Comprehensive
Medical Insurance
36. Required by law to have as of January 2014Hide answers
Children
Health InsuranceX
College Degree
Life Insurance
37. This type of insurance can be compared to rent, doesn't build cash valueHide answers
Health Insurance
Disability Insurance
Full Auto Coverage
Term Life InsuranceX
38. Age, Gender, type of vehicle will affect the amount ofHide answers
How successful you are
Deductible
Allowance
PremiumX
39. Replaces ones income if they get injured/ill and are unable to workHide answers
Disability InsuranceX
Auto Insurance
Liability
Health Insurance
40. Susan is 18 and she invests $500 into a Mutual Fund earning 6%. When she is 66 how much $?Hide answers
$8000X
$2000
$12000
$4000