Final Unit 4

Question 1

our accumulated money and assets

Answer 1

wealth

Question 2

someone who is retired and collecting Social Security is probably on

Answer 2

fixed income

Question 3

buying and selling stocks and bonds

Answer 3

active investing

Question 4

equities

Answer 4

stocks

Question 5

loans that investors make to governments and corporations

Answer 5

bonds

Question 6

their collection of various investments

Answer 6

portfolio

Question 7

an interest charge that borrowers pay lenders for a loan

Answer 7

simple interest

Question 8

when you earn interest on an investment for one year, the borrower will pay you interest based upon the higher second-year amount

Answer 8

compounding interest

Question 9

accounts that are started by individuals

Answer 9

IRA Individual Retirement Accounts

Question 10

when investors get a share of the profits

Answer 10

dividend

Question 11

these are designed to provide a predictable monthly cash payment to the holder. these are sometimes funded by employers or individuals.

Answer 11

annuities

Question 12

pays your beneficiary a set amount of money when you die

Answer 12

Universal Life Insurance

Question 13

return

Answer 13

yield

Question 14

to spread your money around between multiple mutual funds, stocks, and bonds

Answer 14

diversify

Question 15

a pool of money that is invested by a manager in a specific type of security (stocks and bonds)

Answer 15

mutual fund

Question 16

the most common investment vehicle today. most employers offer this investment type as a benefit. This allows you to save more and lower your taxable income

Answer 16

401k

Question 17

usually a perk offered by older companies and unions. this organization with contribute money in the name of the employee.

Answer 17

pension plans

Question 18

YTD

Answer 18

year to date

Question 19

IPO

Answer 19

initial public offering

Question 20

types of stocks

Answer 20

income stocks, growth stocks, preferred stocks

Question 21

rate the types of stocks from least to most risky

Answer 21

preferred, income, growth

Question 22

What are the different stock markets in the U.S.? Which is the biggest by dollar value?

Answer 22

Dow Jones Industrial, S&P, NASDAQ. NASDAQ

Question 23

How can an investor track the overall performance of a stock market that day?

Answer 23

portfolio tracker

Question 24

what do you call it when bonds expire

Answer 24

maturity

Question 25

What do bond ratings tell you about their return/yield?

Answer 25

lower ratings, higher risk. high ratings, low risk

Question 26

What is the primary reason people save for the long-term?

Answer 26

delayed gratification

Question 27

short term savings

Answer 27

emergency money, vacation, repairs

Question 28

long term savings

Answer 28

retirement, college costs, financial security

Question 29

different types of bonds

Answer 29

savings bonds, treasury bonds, corporate bonds, municipal bonds

Question 30

Many ways to help you save money

Answer 30

Individual Retirement Accounts (IRA), 401k, Pension Plans, Universal Life Insurance, Annuities