Question

Savings accounts and money-market accounts are most appropriate for:
Savings accounts and money-market accounts should be avoided since they carry high risk
Emergency funds and short-term goals
Earning a high rate of return
Long-term investments like retirement
A list of your investments
Bank statement
Portfolio
Which of the following statements about the stock market is false?
The Dow Jones Industrial Average is one measure of the stock market.
The stock market is a generic term that encompasses the trading of securities.
Formed in 1792, the New York Stock Exchange (NYSE) is the smallest organized stock exchange in the United States.
The terms bull market and bear market describe upward and downward market trends.
You should start investing as soon as you have your college education funded.
False
True
Money markets are great for your emergency fund due to their liquidity and stability.
False
True
You can start investing with a small amount of money.
False
True
Which of the following is a good investment option?
Futures
Viaticals
Gold
Mutual funds
Company Xʹs board of directors has decided to issue a portion of its earnings to its shareholders. If you own stock in Company X, you can expect to receive a(n):
Investment
Yield
Buy-out
Dividend
A reason that people need to save and invest is to:
Have an opportunity to talk with financial service providers
Be able to get anything they want
Increase the money supply
Enable their money to make money
Which statement is false about liquidity?
Both A and B
The more liquid an investment, the less return
The less liquid the investment, the less return
The more liquid an investment, the more return
Piece of ownership in a company, mutual fund or other investment
Share
401k
Money that is invested, either tax deferred or tax free, within a retirement plan
Dividend
Tax-favored dollars
The benefit of diversification in your investments is:
Increased risk
Reduced tax liability
Increased return
Reduced risk
Good investment portfolios are extremely complex.
False
True
Employee benefits packages:
Never include retirement plans
Are the same regardless of the company you work for
Are non-wage compensations provided to employees in addition to their normal wages or salaries
Should not be a consideration when looking for a job
Distribution of a portion of a company’s earnings, decided by the board of directors, to a class of its shareholders
Dividend
Interest
If you leave a job and have money saved in your employer’s retirement plan, always roll that money into an IRA using a direct rollover, which allows you to avoid taxes and penalties.
True
False
Securities that represent part ownership or equity in a corporation
Bonds
Stocks

Answer 1

1. Savings accounts and money-market accounts are most appropriate for:
- Emergency funds and short-term goals

2. A list of your investments:
- Portfolio

3. Which statement about the stock market is false?
- Formed in 1792, the New York Stock Exchange (NYSE) is the smallest organized stock exchange in the United States. (false)

4. You should start investing as soon as you have your college education funded.
- True

5. Money markets are great for your emergency fund due to their liquidity and stability.
- True

6. You can start investing with a small amount of money.
- True

7. Which of the following is a good investment option?
- Mutual funds

8. If Company X issues a portion of its earnings to shareholders, you can expect to receive a(n):
- Dividend

9. A reason that people need to save and invest is to:
- Enable their money to make money

10. Which statement is false about liquidity?
- The less liquid the investment, the less return (false)

11. Piece of ownership in a company, mutual fund or other investment:
- Share

12. Money that is invested, either tax deferred or tax free, within a retirement plan:
- Tax-favored dollars

13. The benefit of diversification in your investments is:
- Reduced risk

14. Good investment portfolios are extremely complex.
- False

15. Employee benefits packages:
- Are non-wage compensations provided to employees in addition to their normal wages or salaries

16. Distribution of a portion of a company’s earnings to shareholders:
- Dividend

17. If you leave a job and have money saved in your employer’s retirement plan, always roll that money into an IRA using a direct rollover to avoid taxes and penalties.
- True

18. Securities that represent part ownership or equity in a corporation:
- Stocks