Personal Finance Unit 5 Review.
Discount.
A Bond Is Sold For Less Than Face Value.
Premium.
A Bond Is Sold For More Than The Face Value.
The chance that prices in general will rise faster than the return on an investment is
Inflation Risk.
Select all the features of an ideal investment.
No Risk, High Rate Of Return, Easy To Invest, No Cost To Invest.
How would you earn a capital gain on your stock?
Selling The Stock For Profit, Dividends Being Paid on The Stocks.
Which of these options have the highest risk?
Stock.
The difference between savings and investments is that savings is money set aside for short term for purchases that will be made in the near future. Investments is putting money aside into long-term financial instruments/investments that will cause the value to grow.
True.
What is the annual interest rate that will cause your investment to double in 6 years?
12%
Chris bought 50 shares of stock at $25.50 per share and sold them for $27.00 per share. What was his ROI (Return On Investment)?
6.0%
A contract purchased from a life insurance company that guarantees a series of regular payments for a set time.
Annuity.
Which of these options is a liquid investment?
Checking Account.
A 401K is a tax-deferred plan for employees of nonprofit organizations.
False.
Retirement planning should begin within 5 years of retirement.
False.
When investing, the higher the risk you are willing to take the less return you can expect.
False.