Question

Single stocks and mutual funds carry the same amount of risk.
False
True
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
Piece of ownership in a company, mutual fund or other investment
Share
401k
Which of the following statements 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.
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.
The terms bull market and bear market describe upward and downward market trends.
The government agency responsible for regulating the stock market
Securities exchange commission
Federal reserve
Federal agency responsible for collecting taxes and for the interpretation and enforcement of the Internal Revenue Code
Federal Deposit Insurance Corporation
Internal Revenue Service
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):
Yield
Buy-out
Dividend
Investment
To ensure that some of your retirement savings will not be subject to income tax upon withdrawal, you would contribute to:
A traditional IRA
An annuity
A Roth IRA
A 401(k)
Distribution of a portion of a company’s earnings, decided by the board of directors, to a class of its shareholders
Dividend
Interest
In some cases, employers will match the employee contribution, but you should fund your plan whether your company matches or not. This statement refers to:
Roth IRA
401(k)
Bond funds
Single stocks
Which of the following is a good investment option?
Futures
Mutual funds
Viaticals
Gold
Quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money
Liquidity
Risk
A reason that people need to save and invest is to:
Enable their money to make money
Have an opportunity to talk with financial service providers
Be able to get anything they want
Increase the money supply
Long-term investments, properly diversified, include the following mutual funds:
Growth, growth and income, bond, aggressive growth
International, bond, aggressive growth, growth
Growth, growth and income, international, aggressive growth
Growth, balanced, international, bond
Saving and investing have nothing to do with the amount of money you make.
False
True
When buying and selling investments, you should not:
Learn the different types of investments
Set your investment goals and consider a time frame
Understand basic investment strategies and identify ones that will help you reach your goals
Switch your investment strategy often, based on market conditions
If you get into financial trouble, borrowing against your retirement plan is a good option.
False
True
You can start investing with a small amount of money.
False
True
Good investment portfolios are extremely complex.
False
True

Answer 1

1. Single stocks and mutual funds carry the same amount of risk. — False

2. 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

3. Piece of ownership in a company, mutual fund or other investment — Share

4. Which of the following statements 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 (this statement is false)

5. The government agency responsible for regulating the stock market — Securities and Exchange Commission

6. Federal agency responsible for collecting taxes and for the interpretation and enforcement of the Internal Revenue Code — Internal Revenue Service

7. Company X’s 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): — Dividend

8. To ensure that some of your retirement savings will not be subject to income tax upon withdrawal, you would contribute to: — Roth IRA

9. Distribution of a portion of a company’s earnings, decided by the board of directors, to a class of its shareholders — Dividend

10. In some cases, employers will match the employee contribution, but you should fund your plan whether your company matches or not. This statement refers to: — 401(k)

11. Which of the following is a good investment option? — Mutual funds

12. Quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money — Liquidity

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

14. Long-term investments, properly diversified, include the following mutual funds: — Growth, growth and income, international, aggressive growth

15. Saving and investing have nothing to do with the amount of money you make. — False

16. When buying and selling investments, you should not: — Switch your investment strategy often, based on market conditions

17. If you get into financial trouble, borrowing against your retirement plan is a good option. — False

18. You can start investing with a small amount of money. — True

19. Good investment portfolios are extremely complex. — False