Question

A retirement plan found in nonprofit organizations such as churches, hospitals and schools.
403(b)
401(k)
457
GIC
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 savings plan operated by a state or educational institution designed to help families set aside funds for future college costs
Guaranteed Investment Contract
529 Plan
Money that is invested, either tax deferred or tax free, within a retirement plan
Dividend
Tax-favored dollars
Securities that represent part ownership or equity in a corporation
Bonds
Stocks
The benefit of diversification in your investments is:
Reduced risk
Reduced tax liability
Increased risk
Increased return
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
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
Relationship of substantial reward compared to the amount of risk taken
Investment strategy
Risk-return ratio
Employee benefits packages:
Are non-wage compensations provided to employees in addition to their normal wages or salaries
Never include retirement plans
Are the same regardless of the company you work for
Should not be a consideration when looking for a job
A list of your investments
Portfolio
Bank statement
A young investor willing to take moderate risk for above-average growth would be most interested in:
Real estate
Mutual funds
Bonds
Single stocks
A mutual fund portfolio that is properly diversified will have all investment dollars located in just one of four different classes of financial assets.
False
True
The purpose of war bonds is to finance military operations during war time. The last time the United States issued war bonds was during the Vietnam War
True
False
A savings account sold by an insurance company, designed to provide payments to the holder at specified intervals, usually after retirement.
Annuity
Single stock
Mutual fund
Money market
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.

Answer 1

1) 403(b)

2) Emergency funds and short-term goals

3) 529 Plan

4) Tax-favored dollars

5) Stocks

6) Reduced risk

7) The more liquid an investment, the more return (this statement is false)

8) True

9) True

10) Risk-return ratio

11) Are non-wage compensations provided to employees in addition to their normal wages or salaries

12) Portfolio

13) Mutual funds

14) False

15) False

16) Annuity

17) False

18) True

19) Share

20) "Formed in 1792, the New York Stock Exchange (NYSE) is the smallest organized stock exchange in the United States." (this statement is false)