Emergency funds and short-term goals
Savings accounts and money-market accounts are most appropriate for:
The more liquid an investment, the less return
Which statement is false about liquidity?
Enable their money to make money
A reason that people need to save and invest is to:
Dividend
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):
Growth, growth and income, international, aggressive growth
Long-term investments, properly diversified, include the following mutual funds:
Reduced risk
The benefit of diversification in your investments is:
A Roth IRA
To ensure that some of your retirement savings will not be subject to income tax upon withdrawal, you would contribute to:
Switch your investment strategy often, based on market conditions
When buying and selling investments, you should not:
Mutual funds
Which of the following is a good investment option?
401(k)
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:
Mutual funds
A young investor willing to take moderate risk for above-average growth would be most interested in:
403(b)
A retirement plan found in nonprofit organizations such as churches, hospitals and schools.
Annuity
A savings account sold by an insurance company, designed to provide payments to the holder at specified intervals, usually after retirement.
Formed in 1792, the New York Stock Exchange (NYSE) is the smallest organized stock exchange in the United States.
Which of the following statements about the stock market is false?
Are non-wage compensations provided to employees in addition to their normal wages or salaries
Employee benefits packages:
True
Money markets are great for your emergency fund due to their liquidity and stability.
False
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
False
A mutual fund portfolio that is properly diversified will have all investment dollars located in just one of four different classes of financial assets.
True
You should start investing as soon as you have your college education funded.
True
Saving and investing have nothing to do with the amount of money you make.
False
Single stocks and mutual funds carry the same amount of risk.
True
You can start investing with a small amount of money.
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.
False
Good investment portfolios are extremely complex.
False
If you get into financial trouble, borrowing against your retirement plan is a good option.
Dividend
Distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders
Risk-return ratio
Relationship of substantial reward compared to the amount of risk taken
Portfolio
A list of your investments
Share
Piece of ownership in a company, mutual fund or other investment
Liquidity
Quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money
529 plan
A savings plan operated by a state or educational institution designed to help families set aside funds for future college costs
Stocks
Securities that represent part ownership or equity in a corporation
Tax-favored dollars
Money that is invested, either tax deferred or tax free, within a retirement plan
Internal Revenue Service
Federal agency responsible for collecting taxes and for the interpretation and enforcement of the Internal Revenue Code
Securities Exchange Commission
The government agency responsible for regulating the stock market