INVESTING EXAM QUESTIONS AND
CORRECT ANSWERS
Complete Questions with Verified Correct
Solutions ALREADY GRDED!!
1) Investing- ANSWER ✔ The process of setting money aside to
increase wealth over time for long-term financial goals such as
retirement
2) 401(K) Match- ANSWER ✔ An employer contribution made to
their employees' 401(k) plan based on individual employee's
contributions
3) Asset Allocation- ANSWER ✔ Dividing an investment portfolio
among different asset categories, such as stocks, bonds, and cash
4) Target Date Fund (TDF) - ANSWER ✔ A type of investment
fund that rebalances its asset mix over time based on a projected
retirement year
5) Treasury Bond- ANSWER ✔ A bond, generally considered to be
a risk-free investment, issued by the U.S. Treasury with a maturity
of more than 10 years
6) Traditional 401(k) Plan- ANSWER ✔ A retirement savings plan,
sponsored through your employer who will often match your
contributions, that allows an individual to save for retirement and
have the savings grow while deferring taxes until funds are
withdrawn
, 7) Traditional IRA- ANSWER ✔ An individual retirement account
that allows a person to set aside pre-tax income up to a specified
amount each year
8) Asset Class- ANSWER ✔ A group of financial instruments which
have similar financial characteristics and behave similarly in the
marketplace (like stocks, bonds, and cash)
9) Bear Market- ANSWER ✔ A market in which prices are falling,
encouraging selling.
10) Bond- ANSWER ✔ A security in which the investor loans
money to a company or government, which then pays regular
interest to the bondholder and returns the principal on the bond's
maturity date
11) Bond Rating- ANSWER ✔ A measurement of the likelihood
that a bondholder will be paid back
12) Brokerage Account- ANSWER ✔ An account that lets
individual investors trade stocks, bonds, mutual funds, and other
investments
13) Bull Market- ANSWER ✔ A market in which there is
increased stock trading and rising stock prices
14) Capital Gain- ANSWER ✔ Profit from the sale of an asset,
such as a stock or a bond, calculated by subtracting the price you
initially paid from the price you then sold it for
15) Capital Gains Tax- ANSWER ✔ A tax levied on profit from
the sale of property or an investment
CORRECT ANSWERS
Complete Questions with Verified Correct
Solutions ALREADY GRDED!!
1) Investing- ANSWER ✔ The process of setting money aside to
increase wealth over time for long-term financial goals such as
retirement
2) 401(K) Match- ANSWER ✔ An employer contribution made to
their employees' 401(k) plan based on individual employee's
contributions
3) Asset Allocation- ANSWER ✔ Dividing an investment portfolio
among different asset categories, such as stocks, bonds, and cash
4) Target Date Fund (TDF) - ANSWER ✔ A type of investment
fund that rebalances its asset mix over time based on a projected
retirement year
5) Treasury Bond- ANSWER ✔ A bond, generally considered to be
a risk-free investment, issued by the U.S. Treasury with a maturity
of more than 10 years
6) Traditional 401(k) Plan- ANSWER ✔ A retirement savings plan,
sponsored through your employer who will often match your
contributions, that allows an individual to save for retirement and
have the savings grow while deferring taxes until funds are
withdrawn
, 7) Traditional IRA- ANSWER ✔ An individual retirement account
that allows a person to set aside pre-tax income up to a specified
amount each year
8) Asset Class- ANSWER ✔ A group of financial instruments which
have similar financial characteristics and behave similarly in the
marketplace (like stocks, bonds, and cash)
9) Bear Market- ANSWER ✔ A market in which prices are falling,
encouraging selling.
10) Bond- ANSWER ✔ A security in which the investor loans
money to a company or government, which then pays regular
interest to the bondholder and returns the principal on the bond's
maturity date
11) Bond Rating- ANSWER ✔ A measurement of the likelihood
that a bondholder will be paid back
12) Brokerage Account- ANSWER ✔ An account that lets
individual investors trade stocks, bonds, mutual funds, and other
investments
13) Bull Market- ANSWER ✔ A market in which there is
increased stock trading and rising stock prices
14) Capital Gain- ANSWER ✔ Profit from the sale of an asset,
such as a stock or a bond, calculated by subtracting the price you
initially paid from the price you then sold it for
15) Capital Gains Tax- ANSWER ✔ A tax levied on profit from
the sale of property or an investment
