Semester 2 Exam Flashcards
T/F
US savings bonds are considered a tax-exempt or tax-free investment choice
True
T/F
Today, more employers are offering employer-sponsored retirement plans than they were in the past
False
T/F
Earnings from tax-deferred investments are completely free from tax
False
T/F
Stocks are shares of ownership in a corporation
True
T/F
Money in a savings account is considered to be a safe and liquid investment
True
Unexpected emergencies or other unplanned events are known as…
Contingencies
Which of the following goals would be considered a long term goal?
Owning a house
Which of the following types of investment risk could occur as a result of a company’s poor management or product recalls?
Stock risk
Which of the following types of investment risk could occur if prices, in general, rise faster than the return on investment?
Inflation risk
A long term, planned approach to making investments is called…
Systematic investing
T/F
A money-market deposit account at a bank is a high-risk investment because it is not insured
False
T/F
A typical CD is not a liquid investment because you must pay a penalty if you withdraw the money before the stated time
True
T/F
Series EE U.S. Savings Bonds are subject to federal income tax, unless they are used to finance education
True
T/F
A premium bond is one that sells for less than its face value
False
T/F
Investment grade corporate bonds have high ratings and are considered fairly low risk
True
Which of the following investments is a medium risk choice?
Mutual funds
Which of the following types of investments is a form of an indirect investment?
Mutual funds
Which of the following types of bonds can be exchanged for shares of common stock?
Convertible bond
Which of the following investment options is illiquid?
Real estate
A corporate bond is redeemed for its…
Face value
T/F
Business Week and Fortune are examples of magazines that contain information related to investing
True
T/F
Major newspapers typically do not include a section about business and investing
False
T/F
Re-investing allows stockholders to buy new shares of stock at a reduced price from a stockbroker
False
The NYSE is an auction market where stock is sold to the highest bidder
True
Using the OTC market to buy stocks is an example of direct investing
False
Which of the following transactions is a request to buy or sell stock at the current price?
Market order
Which of the following figures compares the selling price of stock to the annual profits per share?
Price earnings ratio
Which of the following organizations is a private, nonprofit organization that regulates firms selling securities in the US?
Financial Industry Regulatory Authority
Which of the following government agencies is responsible for the economic security of the US?
US Department of the Treasury
The MyMoney.gov and My Money Tool Kit for Consumers are provided by the…
US Financial Literacy and Education Commission
T/F
You need to read newspapers and magazines to keep up with what is going on in the world
True
T/F
Unless the employer requests that it be typed, a letter of application should be handwritten
False
T/F
Employers do not have the right to monitor an employee’s email
False
Which of the following is a true statement about new employees?
They should follow the rules exactly
T/F
The more allowances you are able to claim on your W-4, the more federal tax will be withheld from your paycheck
False
T/F
If you lose your social security card, you may apply and receive a new number
False
The Fair Labor Standards Act established…
Minimum wages
