5 term

Module 1
Investments
Variant 1
1.Fill in the gap with the correct term
1. ____ represent ownership in a company and entitle the holder to a share of the company's profits
and assets.
a) bonds b) stocks c) assets
2. ____ are debt securities issued by governments or corporations, representing a loan made by an
investor to the issuer.
a) bonds b) stocks c) assets
3. ____ pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or
other securities.
a) unit trusts b) mutual funds c) pension funds
4. ____ are similar to mutual funds but trade on stock exchanges like individual stocks.
a) exchange -traded funds b) mutual funds c) trusts
5. _____ involves the purchase, ownership, management, rental, or sale of properties for profit or as
an investment.
a) equipment b) securities c) real estate
6. _____ accounts like Roth IRA and IRA are tax-advantaged accounts designed to help individuals
save for retirement.
a) savings b) deposit c) retirement
7. _____ accounts are interest-bearing deposit accounts held at a financial institution that offer easy
access to funds.
a) savings b) deposit c) retirement
8. _____ is how well a person deals with the chance of loss.
a) risk management b) risk aversion c) risk tolerance
2. Answer the questions:

 What are some ways to use money to make more money?

 What is risk aversion?

3. Fill in the gaps:

An Individual Retirement Account
An Individual Retirement Account (IRA) is a 1_____ ____ savings account specifically
designed to help individuals save for _2_____ . There are two primary types of IRAs: Traditional and
Roth IRAs, each with distinct tax treatment and features.
In a Traditional IRA, you contribute money with the advantage of potentially reducing your
taxable income for the year in which the 3_____ is made. These contributions are 4_______ , which
means you'll owe less income tax for that year. The earnings within a Traditional IRA grow tax-
deferred, which means you won't pay taxes on the gains until you start withdrawing the money
during your retirement. However, at that point, the 5______ are subject to income tax.
On the other hand, a Roth IRA operates differently. Contributions to a Roth IRA are made
with after-tax dollars, so there are no immediate tax deductions. However, the 6 ____ ____ of a Roth
IRA lies in its tax-free withdrawals. When you retire, both your original contributions and the
earnings can be withdrawn without incurring any income tax. This can be particularly 7_____ if you
anticipate being in a higher tax bracket during your retirement years.
Both types of 8____ have contribution limits that may vary from year to year, so it's crucial to
stay informed about the most recent limits. These accounts offer a wide range of investment options,
including stocks, bonds, mutual funds, and more. It's important to note that IRAs come with 9_____
for early withdrawals before reaching the age of 59½, though there are exceptions for certain
qualified expenses, such as a first-time home purchase or education.
In summary, IRAs provide a tax-efficient means of 10 _____ for retirement and are a vital
component of a comprehensive retirement strategy. Choosing between a Traditional IRA and a Roth
IRA depends on your financial situation, goals, and expected future tax bracket.

saving IRAs withdrawals contribution tax-advantaged

key benefit advantageous retirement tax-deductible penalties

4.Translate into Ukrainian:

1. A Roth IRA is a type of retirement account where contributions are made with after-tax dollars,
but qualified withdrawals, including earnings, are tax-free, making it an attractive option for
those who expect their tax rate to be higher in retirement.
2. Bonds are debt securities issued by governments or corporations. They pay periodic interest and
return the principal amount when they mature, providing a more stable, income-focused
investment option.
3. CDs are time-bound, interest-bearing deposits held at banks or credit unions. They offer a fixed
interest rate and are a low-risk, low-reward investment.
4. Profit sharing is a corporate incentive program where a portion of the company's profits is
distributed to employees, often as a contribution to their retirement accounts, such as a 401(k).
5. Retirement age varies by country and individual preference, but it's often associated with the age
at which people stop working and begin drawing on their retirement savings or pension plans.
 5 term
Module 1
Investments
Variant II
1.Fill in the gap with the correct term:
1. ____ are time-bound deposits with fixed interest rates issued by banks or credit unions.
a) demand deposit b) CDs c) current accounts
2. _____ like Bitcoin and Ethereum are decentralized digital assets designed for secure, peer-to-
peer transactions.
a) Cryptocurrencies b) national currencies c) foreign currencies
3. ______ include physical goods like gold, oil, or agricultural products that can be traded on
commodity exchanges.
a) services b) securities c) commodities
4. _____ like gold, silver, and platinum have intrinsic value and can act as a hedge against
inflation.
a) jewelry b) natural deposits c) precious metals
5. ______ encompass valuable objects like paintings, antiques, or vintage items that can
appreciate over time.
a) money b) intangible assets c) art and collectibles
6. ______ involves trading one currency for another in the global marketplace.
a) Forex b) stock market c) exchange rate
7. ______ represent early-stage companies seeking capital for growth and development, often
through venture capital or angel investing.
a) investment banks b) startups c) small businesses
8. ______ is a person’s level of reluctance to face the chance of loss.
a) risk management b) risk aversion c) risk tolerance
2. Answer the questions:

 How does risk affect a person’s investment style?

 What are the safest types of investment?

3.Fill in the gaps:

Roth IRA
A Roth Individual Retirement Account (Roth IRA) is a distinctive retirement savings vehicle
that offers exceptional1____ ____. What sets it apart from a Traditional IRA is the way it handles
taxes. With a Roth IRA, you contribute money with after-tax dollars, meaning there are no
immediate 2___ ___ for your contributions. However, the true benefit comes into play during your
retirement years.
 3____ within a Roth IRA grow tax-free, and the withdrawals you make during retirement are
also4___, provided they meet certain qualifications. This means that, unlike Traditional IRAs where
you'd pay income tax when you withdraw, the money you take out of your 5 ___ ___ in retirement is
entirely tax-free. This can be an incredible advantage, especially if you anticipate being in a higher
tax bracket when you retire.
Roth IRAs have income 6 ___ that can restrict higher-income individuals from making direct
contributions. However, a strategy known as a "backdoor Roth" can be used to navigate these limits.
Additionally, Roth IRAs do not have required minimum distributions (RMDs), which are mandatory
withdrawals starting at a certain age in Traditional IRAs. This feature gives you more 7____ and
control over your retirement income.
In addition to the tax advantages, a Roth IRA offers the same range of investment options as a
Traditional IRA, including stocks, 8 ____ , mutual funds, and more. It's a valuable 9 ___ for
diversifying your retirement portfolio and optimizing your income during your post-working years.
In conclusion, a Roth IRA can be a powerful addition to your 10____ strategy, particularly if
you aim to maximize tax-free income during retirement. It's essential to assess your financial
situation, long-term goals, and expected tax circumstances when deciding whether a Roth IRA is the
right choice for you.

bonds Roth IRA tool retirement flexibility

tax-free limits tax deductions Earnings tax advantages

1. Translate into Ukrainian:

1. An IRA is a tax-advantaged savings account designed to help individuals save for retirement,
providing tax benefits that vary based on whether it's a Traditional or Roth IRA.
2. Tax deductions are expenses or contributions that can reduce your taxable income. In the context
of retirement savings, Traditional IRAs and 401(k)s allow for pre-tax contributions, resulting in
lower taxable income in the current year.
3. An aggressive investment approach involves seeking higher returns by taking on higher levels of
risk. This may include investing heavily in stocks, commodities, or other volatile assets.
4. Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks,
bonds, or other assets. They are managed by professional fund managers.
5. In finance, equity refers to ownership in a company, often represented by shares of stock. It
signifies a claim on the company's assets and earnings, making it a valuable investment class.