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Investment Test

Matching
 
 
Match the term and best definition
a.
Dow Jones Industrial Average
f.
Secondary market
b.
Treasury Bonds
g.
New York Stock Exchange
c.
Bull Market
h.
Money market account
d.
Primary market
i.
Dividends
e.
Risk tolerance
j.
Capital Gains
 

 1. 

average cost of 30 selected stocks, used to give an
indication of the direction (up or down) of the stock market over
time.
 

 2. 

profit from the sale of property or an investment - taxable
 

 3. 

A type of savings account that pays a higher interest rate
because the financial institution invests the money you deposit.
 

 4. 

degree of uncertainty that an investor can handle
 

 5. 

The largest and oldest stock exchange in the US
 

 6. 

the market in which previously issued securities are traded
among investors
 

 7. 

prolong increase in increase prices of securities
 

 8. 

a sum of money paid regularly by a company to its shareholders out of its profits
 

 9. 

issued by the federal government payable in 30 years
 

 10. 

the market in which new securities are originally sold to
investors
 

Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 11. 

If you purchase a bond you are
a.
giving the seller a loan
c.
reducing you taxable income
b.
expecting a change in your mortgage
d.
buying an investment with high risk
 

 12. 

A steady drop in the stock market over a period of time
a.
SEC
c.
Bull Market
b.
FINRA
d.
Bear Market
 

 13. 

Payment from a Roth IRA are
a.
Taxable
b.
not taxable
 

 14. 

It is time to file your taxes. You need to file a _______- form by April 15th. Information about your earning can be found on your _____ you received from your employer.
a.
1040,  W-2
c.
W-2 , W-4
b.
1040,  W-4
d.
W-4, W-2
 

 15. 

Capital gains are
a.
not taxable
b.
Taxable
 

 16. 

Selling a stock in the first year _________, so you want to hold stock for at least a year.
a.
has no impact on taxes
c.
increases the amount you make on the stock
b.
decreases the amount of capital gains you pay
d.
increases the amount of capital gains you pay
 

 17. 

If you contributed to a Roth IRA 40 years ago and are withdrawing funds for retirement, you
a.
Pay taxes on principal
c.
Not responsible for taxes on interest
b.
Pay taxes on interest
d.
Not responsible for any taxes
 

 18. 

Letters used to identify listed companies on the securities exchanges where they are traded
a.
S&P 500
c.
ticker or stock symbol
b.
stock split
d.
NYSE
 

 19. 

A stock of an established and historically successful corporation is referred to as a ___?
a.
Blue Chip
c.
Gold Standard
b.
Blue Ribbon
d.
Best Rated
 

 20. 

A government bond that is repaid within 2 to 10 years
a.
T - Notes
c.
Savings Bonds
b.
T - Bonds
d.
T - Bills
 

 21. 

You must include __________________ on your 1040 form.
a.
Bond purchases
c.
Stock purchases
b.
Capital Gains
d.
Rebates
 

 22. 

You earn $60,000 in 2019, your taxable income is $55,000.  What is the reason for the reduction?
a.
You contribute to a 401K
c.
You contribute to a Money Market account
b.
You contribute to a Mutual fund
d.
You contribute to a Roth IRA
 

 23. 

Oldest and largest stock exchange in the U.S., located on Wall Street in NYC.
a.
Big Board
c.
Russell Index
b.
American Exchange
d.
Bear Market
 

 24. 

Payment from a traditional IRA are
a.
not taxable
b.
Taxable
 

 25. 

Dividends are
a.
Taxable
b.
not taxable
 

 26. 

a government bond that is repaid within 1 year
a.
Savings Bonds
c.
Treasury Bonds
b.
Treasury Bills
d.
Treasury Notes
 

 27. 

Another name for stocks that represent ownership of a company
a.
bond
c.
ticker symbol
b.
Equities
d.
volatility
 

 28. 

An investment your employer established for your retirement - payroll deductions are contributed on a pre-tax basis.
a.
401K
c.
SEP
b.
Roth
d.
125
 



 
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