Personal Finance Final Exam Review Game Investing Basics Stocks and Bonds Mutual Funds Retirement Planning Miscellaneous 100 100 100 100 100 100 100 100 100 100 100 100 100 200 200 200 200 200 300 300 300 300 300 400 400 400 400 400 500 500 500 500 500

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 tax-exempt 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 tax-deferred, 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 tax-free 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.?