Econ Unit 5

Question 1

What are smart investors using to spread their money around to make multiple investments?

Answer 1

Diversification

Question 2

When someone declares bankruptcy, who must give up valuable assets to help pay their debts?

Answer 2

Borrower

Question 3

It is a good idea for what kind of investors to seek a financial advisor?

Answer 3

Passive Investors

Question 4

Regular payments to shareholders by safe stock companies are called _____.

Answer 4

Dividends

Question 5

Before committing to an investment, you should evaluate what?

Answer 5

Risk

Question 6

What kind of price represents investors’ expectations concerning the future profits and growth prospects of a publicly traded business?

Answer 6

Stocks

Question 7

What kind of student loans do not need to be repaid until after the student finished attending college?

Answer 7

federal

Question 8

What is a charge for financial advice or a transaction?

Answer 8

Commission

Question 9

What will happen to a property if the homeowner can no longer pay the home loan?

Answer 9

foreclosure

Question 10

The Free Application for Federal Student Aid is the best way to pursue _______ aid for college expenses

Answer 10

Federal

Question 11

What score will increase by making on time payments?

Answer 11

credit

Question 12

What type of investment was created to help investors pool money and benefit from professional money managers?

Answer 12

mutual funds

Question 13

What increases in value over time due to employee labor, new trade opportunities, new ideas, and technological advancements?

Answer 13

stocks

Question 14

What type of loan charges the same rate and payments for the life of the loan?

Answer 14

standard fixed-rate

Question 15

What kind of loan is taken out to purchase a property?

Answer 15

mortgage

Question 16

A(n) _______ tracks a segment of a market or an entire market.

Answer 16

index

Question 17

______ loans charge very high fees and interest rates.

Answer 17

paycheck

Question 18

Building a good ______ is important for being able to purchase a home or other expensive items.

Answer 18

credit history

Question 19

_____ are commodities.

Answer 19

barrels of oil

Question 20

This index tracks 30 of the most influential American companies.

Answer 20

Dow Jones Industrial Average

Question 21

The amount of a loan used to calculate interest is the ______.

Answer 21

principal

Question 22

This type of loan is secured by the same property that it is being used to purchase.

Answer 22

mortgage

Question 23

This financial product benefits workers who are physically unable to work.

Answer 23

disability insurance

Question 24

This type of business structure provides protection against personal liability.

Answer 24

limited liability company (LLC)`

Question 25

Multiple people share the profit, loss, risk, and work of ownership in this type of business structure.

Answer 25

partnership

Question 26

Motorists in every state are required to have _______ insurance.

Answer 26

liability

Question 27

Banks create large pools of _______ from which others may borrow.

Answer 27

capital

Question 28

A ____ symbolizes the ideal of the American Dream and is not connected to any other building.

Answer 28

single-family home