Portfolio Power Bonus Question
Cards
Definition: Definition: Definition: Definition: Definition:
This investment works like a This investment is a debt This investment is money you With this investment you are An investment company that
checking account but pays obligation of the U.S. Treasury put in a bank or a credit union lending to a bank or credit pools money from several
interest. You can take your that has a maturity term of one for which they pay you a little union for a specific amount of investors and uses the money
money out whenever you year or less. Maturities for interest. There is no minimum time, such as 6 months or 2 to buy a particular type of
want. But you have a limit on these are usually 91 days, 182 balance and since the years. The financial institution investment, such as stocks and
how many checks you can days, or 52 weeks, however government guarantees the pays you a higher interest rate bonds. Funds are
write & the starting required these can be sold before safety of this investment, the the longer the term, and professionally managed and
balance is higher than a regular maturity. risk is low. there’s a penalty if you want to there are many different kinds
checking account. take your money back early. of funds.
Answer: Money Market Account Answer: Treasury Bills Answer: Savings Account Answer: Certificate of Deposit
Answer: Mutual Fund
Definition: Definition: Definition: Definition: Question: Gold, Silver,
With this investment an issuer This is an investment in a This is an investment that This investment is in unique Platinum, and Palladium are all
makes an agreement to owe piece of property, such as land represents ownership in a items that are relatively rare in examples of what type of
the investor an amount of or a building. company. In different types of number, such as works of art investment?
money after a set amount of companies (new firms versus or antique cars.
time. Answer: Real Estate Investment startups, big versus small Answer: Precious Metals
companies), these carry Answer: Collectibles
Answer: Bonds different levels of risk and
return.
Answer: Stocks
True or False: When you True or False: It is a lot Question: Define Question: Carleesha has an Question: Martin has a small
invest in a CD (certificate of riskier to invest in real estate diversification. investment portfolio with amount of money that he
deposit) you may reclaim your than it is to invest in Treasury stocks and real estate wants to put in a low-risk
money whenever you want. Bills. Answer: the reduction of investments, while Jamal has a investment. Name one
investment risk by spreading your portfolio with bonds and possible option.
Answer: False Answer: True invested dollars among several treasury bills. Whose portfolio
different investments. has a higher return rate? Answers: Savings Account, CD,
Treasury Bills, Money Market
Answer: Carleesha Account
Question: Define Liquidity. Question: What does “risk” Question: What does “return True or False: Investing in Question: What is a dividend?
mean in the context of rate” mean in the context of bonds is less risky than
Answer: the ease with which an investing? investing? investing in precious metals. Answer: A portion of a
investment can be turned into cash, company’s stock paid out to
without a significant loss of value. Answer: the degree of uncertainty Answer: how fast your money Answer: False shareholders.
about the expected return from an grows. Sometimes investors use
investment, including the possibility “interest rate” as a synonym for rate
that some or all of the investment of return.
may be lost.
True or False: A shareholder Question: In the financial Question: In the financial Question: What is listed in Question: If you buy a
can experience a capital gain pages of the newspaper, what pages of the newspaper, what the “stock” column in the company’s stock, you:
every time dividends are paid does the “Last” column does the “Change” column financial pages of the
out. represent? represent? newspaper? a. own a part of the company
b. have lent money to the
Answer: False. A capital gain is Answer: The final stock price of Answer: How much the stock’s Answer: The company’s stock company
experienced only when the the day. price changed from the previous symbol -- the name of the company c. are liable for the company’s
shareholder sells his or her stock for day’s closing price. in abbreviated form. debts
a price higher than the price for
which it was bought. Answer: a
Question: Federal and state Question: Jose invests in a Question: Why is it important Question: Assume Tony & True or False: When the
laws protect investors by mutual fund and bonds, while to invest using the principle of Carmen invest in the same economy is experiencing a
requiring companies to: Sandra invests in treasury bills. “diversification”? low-risk investment. Tony “bull market,” this means that
Who diversifies their money invests $15,000 over 10 years people are losing money on
a. show profits before they can more? Answer: Because there is less risk and Carmen invests $5,000 their stocks.
sell stock when you spread your money out over 30 years? Who will earn
b. give investors important Answer: Jose because he spreads among different investments. more? Answer: False
information it out over more investments.
c. pay dividends Answer: Carmen
Answer: b