Economics Unit 5 Quiz 3

New York Stock ExchangeNASDAQexchange-traded fund (ETF)Roth individual retirement accountStandard & Poor's 500 Indexindividual retirement account (IRA)401(k) savings planDow Jones Industrial AverageChicago Mercantile Exchange This stock exchange specializes in agricultural financial investments.

Chicago mercantile Exchange

This index tracks 30 of the most important U.S. companies.

Dow Jones Industrial Average

This basket of stocks or other investments may be traded in real time just like a stock.

Exchange-traded fund

Earnings from this account are not subject to tax if withdrawn after age 59 ½.

Individual Retirement Account

_______ funds were created to pool investors' money and encourage small, periodic investments.

Mutual

This electronic stock exchange is home to many large technology company stocks.

NASDAQ

The world's largest stock exchange is in America's largest city.

New York Stock Exchange

Which answer is NOT a reason stocks generally appreciate in value over time?

Over time, most investors hold on to stocks, creating scarcity and driving up prices.

A good ______ advisor can help you wisely manage your investments.

financial

A(n) ___ is an example of a commodity.

gallon of milk

Investors who take too little risk might _____.

lose purchasing power and miss out on the power of compound interest

When interest rates go down, bond fund prices go up because ___.

more investors can afford bonds

Stockholders who own the company are not directly liable for company actions.

partnership

A(n) ______ company does not have or allow trading of its ownership by stockholders

private

A(n) ______ traded company issues shares of ownership through stock offerings.

publicly

which of the following was the price of MCD at the start of the trading day?

$113.72

An investor sells 150 shares of Amazon (AMZN) stock at $35.00 and pays a $7 commission. What is the total amount of money received by the investor?

$5,243

Small businesses are the likely beneficiaries of this business structure that protects the owner from personal liability.

(LLC)

Employers can match employee contributions to retirement savings.

401k savings plan

This account allows individuals with income to make tax-deferred investments for retirement.

Roth individual retirement account

A(n) ______ is interchangeable with other goods of the same kind.

artifact

A legal ______ is a group or organization recognized by the government as such.

association

Most investors use a ____ to handle investment transactions, track investments, and receive statements on a regular basis

brokerage

A(n) _____ is a charge for a financial transaction or advice.

commission

The work, risk, losses, and profits are divided between multiple owners.

corporation

Businesses have a legal responsibility to make certain accommodations for ____ customers.

disabled

Dividing your money among multiple investments is the principle of ___.

diversification

A company may pay a(n) ______ out of earnings to stockholders.

dividend

A bond issued and backed by the government is called a government ______.

security

The owner has freedom, but also has trouble getting loans and is subjected to personal liability.

sole proprietorship

The stock performance of hundreds of America's largest companies are tracked by this index.

standard and poor's 500 index

The price of a(n) ____ represents investors' collective expectations of a company's future growth and profits.

stock

A marketplace where stocks are bought and sold is a(n) ______.

stock exchange