Investing And Insurance

Which is true about investments and risk?

If a company pays dividends on a stock, does that mean that the stock has appreciated in value? Why or why not?

Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that investors face?

What is one way in which bonds do not generate income for investors?

Which statement best describes how an investor makes money off debt?

Which best describes what a market index does?

Which best describes the role that government and business play in investments?

Which factors can affect a stock's price? Check all that apply.

Which can be traded in a commodities market?

Once stocks are on the market, which best explains how their prices are set?

Which statement is true of the relationship between risk and return?

Why should investors know the difference between nominal and real interest rates?

If the Federal Reserve decreased the money supply, what would the effects be? Check all that apply.

The nominal interest rate could best be described as the rate.

The graph shows the effect of inflation. Approximately how much of the initial investment's value would be lost after 15 years at 3% inflation?

_________ policy involves government changes to spending or taxation to affect the economy.

An investment with a stable and predictable history will most likely have

Interest rates generally reflect

Compared to high-risk investments, low- and medium-risk investments are in higher demand because they

If an investor has a $5,000 pretax return, the state tax rate is 4.5%, and the federal tax rate is 22.0%, what is the real investment value?

How is a 401k different from an individual retirement account (IRA)?

Which investment has the least liquidity?

The graph shows examples of investments with high and low liquidity. An investment with more liquidity would be ideal for someone who

Which investor is making a common error?

Which statements are true regarding an individual retirement account? Check all that apply.

Which of these are considered both short- and long-term investments? Check all that apply.

The images show what happened to two people who invested $1,000. Which investment advice would Gale most likely give to Alex?

A couple has decided to increase their income from investments for when they retire in twenty years. Which is the best way they can accomplish that goal?

William is not generally a risk-taker, but he knows he may need to step out of his comfort zone to make enough money for retirement. Which investment option would best meet William's needs?

Which are common mistakes people make when investing? Check all they apply.

If two people are invited to invest and become partners in a business, the business owners will then ________ the risk.

Which type of insurance policy would someone get to protect others only?

How can an insurance company make a profit by taking in premiums and making payouts?

Which is always a cost when buying insurance?

What is the definition of premium?

Why does insurance often provide "peace of mind"?

An entrepreneur keeps backup funds in a savings account so that if their business experiences a loss, they will be able to recuperate. What type of risk management is this an example of?

When an insurance company needs to provide a payout, the money is removed from

After he bought a new car, Nelson purchased car insurance. He must pay $75 each month for the plan.Later that month, Nelson caused a car accident when he lost control of his vehicle. He was required to pay the first $500 of his repair costs, and then the insurance company covered the rest. Read the passage about Nelson's car insurance. What is the $75 payment Nelson must make each month?

Most people prefer to pay health insurance premiums rather than pay out-of-pocket for medical expenses because

Which of these affect real investment value? Check all that apply.

Compared to a short-term investment, a long-term investment is generally considered

Which questions should Robert ask himself before investing the $10,000 he inherited? Check all that apply.

Which is an example of a short-term investment?

Changes in monetary policy occur when the Federal Reserve

Interest rates are expressed as a percentage of

Putting money into more than one kind of investment at a time is called

Julie wants to buy a car and is deciding how she should invest her money. To best meet her needs, she should

Which is a commodity someone might invest in?

Which characteristic is most important in determining an investment's level of risk?

In what circumstance would a property insurance claim be rejected?

If the nominal interest rate is 4.00% and the rate of inflation is 2.25%, what is the real interest rate?

Which statement best describes how inflation affects the value of investments over time?

Taxes are often owed on

Capital appreciation refers to

Which characteristic is most important in determining an investment's level of risk?