Unit 5 Unit Test
The ____ Industrial Average is an index tracking 30 of the most influential American companies.
Dow Jones
_____ student loans do not have to be repaid until after a student finishes attending college.
Federal
A(n) ______ loan is one in which the property purchased secures the loan.
mortgage
This type of investment was created to help investors pool money and benefit from professional money managers.
mutual funds
Multiple people share the profit, loss, risk, and work of ownership in a(n) _____ business structure.
partnership
Seeking a financial advisor is an especially good idea for _____ investors.
passive
It is important to evaluate _____ before committing to an investment.
risk
Smart investors use _____ to spread their money among multiple investments.
diversification
What was the price of BAC at the start of the trading day? 17.42 down, 1.11% change, 17.42(0.0111)+17.42
$17.62
Match the statements with the concepts. 1. This represents investors' expectations concerning the future profits and growth prospects of a publicly traded business. 2. These short-term loans charge very high fees and interest rates. 3. Every state requires drivers to have this insurance. 4. This affects one's future earning potential more than anything else. 5. This is a measure of the value of a house to a homeowner after subtracting any loan balance. 6. Safe stock companies often make these regular payments to shareholders.
1. stock price 2. paycheck loans 3. liability insurance 4. level of education 5. equity 6. dividends
______ typically increase in value over time due to employee labor, new trade opportunities, new ideas, and technological advancements.
Stocks
A(n) _____ must give up valuable assets to help pay debts when declaring bankruptcy.
borrower
A _____ is a charge for financial advice or a transaction.
commission
Making payments on time will boost one's ____ score.
credit
The Free Application for Federal Student Aid is the best way to pursue _______ aid for college expenses.
federal
If a homeowner can no longer pay the home loan, the lender will likely _____ on the property.
foreclose
The performance of a segment of a market or even an entire market may be tracked by a(n) _____.
index
This type of account allows an individual who earns income to make tax-deferred investments for retirement.
individual retirement account
One ideal of the American Dream is to own a(n) _____ home not connected to any other building.
single-family
This type of loan charges the same rate and payments for the life of the loan.
standard fixed-rate