Review Game Zone
Flash Cards
(current)
Games
Teachers
Search
Econ- Chapter 6
Test Description: Investing
Instructions: Answer all questions to get your test result.
1) It is estimated that every year 20 million American investors do what?
A
Use the Internet to make trades.
B
Purchase government savings bonds
C
Invest using over-the-counter markets
D
Purchase stocks through brokers
2) Savings bonds sell for less than their face value because:
A
This is how they pay interest
B
Banks compete to sell them
C
Interest is tax-exempt
D
They pay dividends twice a year.
3) Interest earned on a Roth IRA is:
A
Taxable upon retirement
B
Tax deferred
C
Tax free
D
Taxable up to $2,000 a year
4) Money market deposit accounts:
A
Are also known as stock funds.
B
Pay lower interest than savings accounts
C
Are insured by the FDIC
D
Allow investors to write checks
5) Treasury bonds:
A
Are certificates issued by the U.S. Treasury
B
Are tax-exempt bonds that fund municipal projects
C
Pay dividends twice a year
D
Are good short-term investments
6) A 401(k) earns more than the traditional IRA or Roth IRA because:
A
The company matched the employee's contributions in the 401(k)
B
All interest earned on the 401(k) was tax-free forever
C
The investor paid no annual tax on the 401(k).
D
The investor didn't have to take the money out of the 401(k) until retirement
7) You earn more in retirement plans than you would on basic savings because you would:
A
Invest more each year in the retirement plans
B
Receive a higher rate of return on the retirement plans
C
Pay yearly taxes on savings
D
Invest in the retirement plans for a longer time
8) One disadvantage of investing in real estate is that such an investment:
A
Cannot easily be turned into cash
B
Is not useful when the investor is ready for retirement
C
Causes the investor to have to pay far more in income taxes
D
Does not often increase in value
9) The Dow-Jones Industrial Average is:
A
A mutual fund
B
Traded over-the-counter
C
A stock market index
D
Another name for the SP 500
10) The Federal Deposit Insurance Corporation (FDIC) insures:
A
Credit union accounts
B
Commercial bank accounts
C
Credit union accounts
D
Money market accounts
11) Increase in the value of an asset from the time it was bought to the time it was sold:
A
Immediate value
B
Cost-benefit margin
C
Capital loss
D
Capital gain
12) Decrease in the value of an asset from the time it was bought to the time it was sold:
A
Capital gain
B
Capital loss
C
Cost-benefit margin
D
Immediate value
13) U.S. government securities backed by the Treasury Department with a maturity of one year or less and is exchanged for a minimum amount of $1,000:
A
Treasury notes
B
Treasury bonds
C
Savings bonds
D
Treasury bills
14) U.S. government debt security that is exchanged for a minimum amount of $1,000. It has a fixed interest rate and a maturity between two and 10 years:
A
Treasury bonds
B
Treasury bills
C
Savings bonds
D
Treasury notes
15) Government debt securities issued by the U.S. Federal government and is exchanged for a minimum amount of $1,000. The maturity is greater than 20 years.
A
Savings bonds
B
Treasury bill
C
Treasury notes
D
Treasury bonds
16) Spreading of investments among several different types to lower your overall risk:
A
Rational Choice
B
Diversification
C
Profit incentive
D
Opportunity Cost
17) A person who buys a stock for $20 and sells it for $30 has earned $10 in:
A
Capital gains
B
Dividends
C
Interest
D
Profit per share
18) Compared to a stock, a bond provides a:
A
Lower dividend
B
Higher level of risk
C
Lower level of risk
D
Higher dividend
*select an answer for all questions
Check Results & Get Answers
Play Games with the Questions Above
Teachers: Create FREE classroom games with your questions
Click for more info!
©2007-2024
ReviewGameZone.com
|
About
|
Privacy
|
Contact
|
Terms
|
Site Map
WAIT! Find what you needed?
×
Still Looking for the Answers?
Have Another Question?
Play a Review Game with These Questions?
Want to Make Your Own Test Like This One?