Quiz: Building Your Nest Egg
by Staff
Saving for retirement can be tough, to say the least. But if you think your nest egg is well-feathered, then this quiz shouldn't be a problem.

Which of the following terms describes the interest due on a bond since the last interest payment was made?

  • Accrued interest
  • Prime rate
  • Dividend
  • Assets

Which term below describes a declining stock market?

  • Dog
  • Bear
  • Bull
  • Fox

Which term or word best describes a company known for its ability to make money?

  • Corporation
  • Blue chip
  • Bond rating
  • Broker

The stock of which of these companies is not considered a blue chip?

  • Microsoft
  • Left Behind Games
  • Disney
  • Walmart

What is an annuity?

  • All shares representing ownership of a business.
  • A series of payments made periodically for a specific period.
  • The actual piece of paper that is evidence of ownership of a corporate stock.
  • A large transaction of stock.

Which of the following is considered a bad credit score?

  • 520
  • 700
  • 789
  • 796

What is the profit from the sale of a capital asset called?

  • Commission
  • Commodity
  • Capital gains
  • Capital sale

In the financial world, what do the letters "CD" stand for?

  • Certificate of Dividend
  • Certificate of Deposit
  • Cash on Demand
  • Cash Depreciation

Which of the following is the correct term to describe the act of spreading investments among different types of securities and companies?

  • Consolidation
  • Convertible
  • Diversification
  • Debenture

Which of the following is more likely to depreciate over time?

  • Motor vehicle
  • Primary home
  • Rental property
  • Business property

Which is the correct term that describes a corporation that owns the securities of another company?

  • Holding company
  • Financial regulatory company
  • Independent broker
  • Investment company

Which of the following best describes a company or trust that uses its capital to invest in other companies?

  • Investment company
  • Holding company
  • Financial regulatory company
  • Independent broker

What is the name for a company plan that allows employees to set aside tax-deferred income for retirement?

  • 526(k)
  • IRA
  • 401(k)
  • Pension plan

Why are Individual Retirement Accounts so appealing?

  • IRAs provide significant tax advantages.
  • IRAs only include blue chip stocks.
  • IRAs are always low-risk investment vehicles.
  • IRAs are part of a well-rounded investment portfolio.

What's the main difference between a Roth IRA and a regular IRA?

  • A Roth IRA requires that taxes be deferred on income contributed to the account.
  • A Roth IRA requires that investors provide significant upfront capital.
  • A Roth IRA requires that taxes be paid upfront on income contributed to the account.
  • A Roth IRA requires that the investor be at least 62 years of age.

Which is the best definition of a mutual fund?

  • Mutual funds take money from thousands of small investors and use the cash to buy a combination of stocks, bonds and other types of securities.
  • Mutual funds contain only bonds issued by a state or political subdivision.
  • Mutual funds contain strictly blue chip stocks.
  • Mutual funds contain various IRAs.

What's a "penny stock?"

  • Stocks that sell for less than $1 a share.
  • Stocks that sell for at least $15 a share.
  • Stocks of emerging companies.
  • Stocks of established companies.

What is the arrangement in which a homeowner borrows against the equity in his or her home and receives regular monthly payments from the lender?

  • Mortgage bond
  • Reverse mortgage
  • Refinanced mortgage
  • Adjustable mortgage rate

What is one way to avoid a penalty for using money in your 401(k) too early?

  • Withdrawing the total amount at age 50.
  • Borrowing against the account.
  • Withdrawing a portion of the total amount to pay down a debt.
  • Withdrawing the total amount to purchase a house.

What do you call a person who is willing to risk a lot of money in the hope of a higher gain?

  • Speculator
  • Broker
  • Principal
  • Registrar