FinAlg Ch 5, 6

What is inflation?

• refers to a broad rise in the prices of goods and services across the economy over time, eroding purchasing power for both consumers and businesses.

• the action of inflating something or the condition of being inflated.

• interest accumulated from a principal sum and previously accumulated interest.

What is compounding interest?

• interest accumulated from a principal sum and previously accumulated interest.

• the action of inflating something or the condition of being inflated.

• a general increase in prices and fall in the purchasing value of money.

What is the difference between a BEAR and a BULL market?

• the values of stocks are on the rise in a bear market and in decline in a bull market.

• the values of stocks are on the rise in a bull market and in decline in a bear market.

• a bear market is when the market is stable and a bull market is the the market is fluctuating.

• a bull market is when there is a lot of pork in the market and a bear market is when the market is sleepy during the winter.

What is the S&P 500?

• a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchange in the United States.

• a stock market index of 30 prominent companies listed on stock exchanges in the United States.

• a stock market index of 30 prominent companies listed on stock exchanges in the United States.

• an annual automobile race held at the Indianapolis Motor Speedway in Speedway, Indiana, United States.

What is the Dow Jones?

• a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchange in the United States.

• a stock market index of 30 prominent companies listed on stock exchanges in the United States.

• an American stock exchange based in New York City. It is the most active stock trading venue in the U.S. by volume, and ranked second on the list of stock exchanges by market capitalization of shares traded, behind the New York Stock Exchange.

• an annual automobile race held at the Indianapolis Motor Speedway in Speedway, Indiana, United States.

What is the Nasdaq?

• a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchange in the United States.

• a stock market index of 30 prominent companies listed on stock exchanges in the United States.

• an American stock exchange based in New York City. It is the most active stock trading venue in the U.S. by volume, and ranked second on the list of stock exchanges by market capitalization of shares traded, behind the New York Stock Exchange.

• an annual automobile race held at the Indianapolis Motor Speedway in Speedway, Indiana, United States.

What are dividends?

• a payment from a company to its investors

• the answer when you divide two numbers

• a general increase in prices and fall in the purchasing value of money

• a performance measure used to evaluate the efficiency of an investment

What is a Return on Investment (ROI)?

• a performance measure used to evaluate the efficiency of an investment

• the money you get when someone lands on your property in a game of Monopoly

• a payment from a company to its investors

• a stock market index of 30 prominent companies listed on stock exchanges in the United States

Which equation do you use to calculate exponential growth?

• ab^x

• mx + b

• a^2 + b^ = c^2

• I would use a calculator

Which function would you use to calculate a 7% yearly return on an investment of $1000 after x number of years?

• FV = 1000(1 + 0.07)^x
• FV = 1000 * 0.07^x
• FV = 1000(1 + 0.10)^x
• FV = 1000(1 + 0.05)^x