Transcript Document

Personal Finance Final Exam Review Game
Investing
Basics
Stocks and
Bonds
Mutual
Funds
Retirement
Planning
100
100
100
100
100
100
100
100
100
200
200
200
200
200
300
300
300
300
300
400
400
400
400
400
500
500
500
500
500
Miscellaneous
The Answer is:
A good reason for investing money.
The Question is:
What are: achieving financial goals,
increasing income, feeling financially
secure, having money for retirement.
The Answer is:
A portion of its earnings that a
company pays out to its common
stock shareholders.
The Question is:
What is a dividend?
The Answer is:
The name given for a period of time
where security prices have risen 20%
or more.
The Question is:
What is a “bull market”?
The Answer is:
Type of investment category where
borrowers (e.g., bank, government entity,
or a corporation) agree to pay periodic
interest and typically return principal to
an investor at a future date.
The Question is:
What is a “loanership”
investment such as bonds
and CDs?
The Answer is:
The risk that the value of an
investment may drop due to events
that affect all similar investments.
The Question is:
What is market risk?
The Answer is:
Shares of ownership in the
assets and earnings of a
business corporation.
The Question is:
What is stock?
The Answer is:
Interest-bearing certificate of
long-term debt issued by a
corporation, state or municipality,
or the U.S. government.
The Question is:
What is a bond?
The Answer is:
Two ways to make money from
common stock investments.
The Question is:
What are receiving dividends
(as cash or reinvested in
additional shares) and increase
in share prices?
The Answer is:
Type of stock that may sell for less
than the true worth of its assets.
The Question is:
What is a value stock?
The Answer is:
Current market price of a stock
divided by its earnings per share
over the past four quarters.
The Question is:
What is the price-earnings ratio?
The Answer is:
A legally required document that
describes a mutual fund’s objectives,
expenses, and performance that must
be given to new fund investors.
The Question is:
What is a prospectus?
The Answer is:
The per share value of a mutual fund
calculated by dividing the number of
outstanding shares into the value of
the fund portfolio.
The Question is:
What is net asset value
or NAV?
The Answer is:
Type of mutual fund that provides taxexempt income by investing solely in
bonds issued by state and local
government and government agencies.
The Question is:
What is a municipal
bond fund?
The Answer is:
Type of mutual fund that invests in
stocks from one industry sector (e.g.,
technology or health care).
The Question is:
What is a sector fund?
The Answer is:
A source of information about
mutual funds.
The Question is:
What are: The Wall Street Journal,
financial magazines, Morningstar,
and the Investment Company
Institute?
The Answer is:
The full retirement age for
Social Security benefits for
workers born in 1960 or later.
The Question is:
What is age 67?
The Answer is:
A personal retirement savings
account for workers with
earned income?
The Question is:
What is an individual retirement
account (IRA)?
The Answer is:
An advantage of a tax-sheltered
(tax-deferred) retirement
savings account.
The Question is:
What are: contributions may be
tax deductible, earnings are taxdeferred, and possible employer
matching.
The Answer is:
The act of transferring retirement
savings from one tax-sheltered
account to another.
The Question is:
What is a rollover?
The Answer is:
The name given to the tax-deferred
retirement savings plan offered to
employees of schools, non-profit
organizations, and universities.
The Question is:
What is a 403(b) plan?
The Answer is:
The practice of investing regular dollar
amounts at regular time intervals.
The Question is:
What is dollar-cost
averaging?
The Answer is:
Example of a tax break that
increases investment returns.
The Question is:
What are: long-term capital gains,
tax-deferred investments, and taxfree investments.
The Answer is:
Type of insurance that protects you
from financial losses suffered when you
are held responsible for injury to others.
The Question is:
What is liability insurance?
The Answer is:
The least expensive type of life
insurance that provides coverage only for
a specific period of time.
The Question is:
What is term life insurance?
The Answer is:
An example of a relationship
between good health and
increased wealth.
The Question is:
What are decreased medical expenses,
increased work productivity and/or
income, and living long enough to
collect Social Security, etc.?