Investing

Front

How can investors receive compounding returns? Options: By selecting a savings account that has a higher interest rate, By investing their earnings back into their original investment, By transferring their earnings into a high-risk investment, By diversifying their investment portfolio

Back

By investing their earnings back into their original investment

Front

Diversification is important in investing because…

Back

It helps you to balance your risk across different types of investments.

Front

Which of the following correctly orders the investments from LOWER risk to HIGHER risk?
Treasury bond − Stock − Diversified mutual fund
Stock − Treasury bond − Diversified mutual fund
Treasury bond − Diversified mutual fund – Stock
Diversified mutual fund − Treasury bond − Stock

Back

Treasury bond − Diversified mutual fund – Stock

Front

Which of the following is generally true about 401(k) and 403(b) retirement plans? Options: They are plans offered through employers., They offer some tax benefits., They restrict when you can withdraw your money., All of the above

Back

All of the above

Front

What is the primary reason to issue stock?

Back

To raise money to grow the company

Front

What is a possible reason a company would sell stock?

Back

To hire more people, To expand its business, To develop new technology

Front

Which is the largest stock exchange?

Back

New York Stock Exchange

Front

Investors nearing retirement will typically shift their investment portfolios to include ________ risk investments.

Back

lower

Front

Which investment is the most risky? Options: bond, stock, mutual fund, savings account

Back

stock

Front

Which type of investment is the least risky? Options: stock, bond, mutual fund, savings account

Back

savings account