second test

Question 1

dow jones

Answer 1

price-weighted average of 30 most significant stocks on NYSE and NASDAQ

Question 2

NASDAQ

Answer 2

most trusted index for companies to list their shares on

Question 3

stock

Answer 3

ownership of a corporation, usually as shares

Question 4

bond

Answer 4

a debt security issues by corporations or governments

Question 5

index fund

Answer 5

safest mutual funds for retirement investing

Question 6

net worth

Answer 6

assets minus liabilities

Question 7

dividend

Answer 7

$ paid regularly by a company to shareholders

Question 8

Diversification

Answer 8

risk management, mixing a wide variety of investments within a profolio

Question 9

Asset allocation

Answer 9

investment strategy, aiming to balance risk and reward betw. equities, fixed income, and cash

Question 10

dollar cost average

Answer 10

investing same $ amt in same investment over a period of time; more shares when low, less when high

Question 11

401k

Answer 11

employer-sponsored retirement plan; employees may match portions of pre or post-tax contributions

Question 12

403b

Answer 12

retirement plan for government or tax-except organization employees to invest pre-tax

Question 13

traditional IRA

Answer 13

allows pre-tax income contributions ti grow tax-deferred; no tax paid until later withdrawls

Question 14

roth IRA

Answer 14

allows post-tax income contributions to be withdrawn tax-free after age 59 1/2

Question 15

sep IRA

Answer 15

allows self-employed individuals to set up IRA’s for themselves and limited amount of employees

Question 16

IRS

Answer 16

bureau of debt of treasury that enforces income tax laws “internal revenue service”

Question 17

W-2

Answer 17

form reporting employee annual wages and tax withheld

Question 18

withholding

Answer 18

amount of wages that an employer sends directly to the federal government and possibly state

Question 19

net income

Answer 19

pay remaining after deduction and taxes paid

Question 20

gross income

Answer 20

pay before any deductions or taxes are paid

Question 21

amortization

Answer 21

figuring cost of loan repayment over time

Question 22

repossession

Answer 22

when once collateral property is taken back by a financial institution

Question 23

lien

Answer 23

guarantees repayment of a loan or seizure of assets

Question 24

unemployment rate

Answer 24

equals number of unemployed divided by number in labor force multiplied by 100

Question 25

quotas

Answer 25

limits on quantity of imports

Question 26

fannie mae

Answer 26

purchases mortgages from banks, bundles them and sells them off on the market discounted

Question 27

cosigner

Answer 27

an additional repayment source for the primary borrower to be approved for a loan

Question 28

equity

Answer 28

amount of ownership of an asset

Question 29

maturity

Answer 29

the date by which the final payment is to be made; could refer to loan or investment

Question 30

PDMU

Answer 30

the satisfaction of a good or service declines as it's available supply increases "principle of diminishing marginal utility"