Types of Investments Formative

Front

Which of the following would be the best short term investment with as little risk as possible? Options: stock market, money market fund, retirement account, savings account

Back

savings account

Front

Which of the following would be the best long term investment if you expect to be in a higher tax bracket when you retire? Options: Roth IRA, Traditional IRA, 401k, 529 Plan

Back

Roth IRA

Front

why is investing in a mutual fund rather than stocks less risky?

Back

diversification

Front

Why might an investor choose a Roth IRA over a Traditional IRA? Options: Higher contribution limits, Guaranteed returns, No income restrictions

Back

Tax-free withdrawals in retirement

Front

What is a disadvantage to using a savings account?

Back

inflation higher than interest rates

Front

What makes a bond different from a stock?

Back

it represents ownership of debt

Front

Certificate of Deposits have higher interest rates than savings accounts

Back

True

Front

Which has the highest risk and return? Options: savings accounts, treasury bonds, index funds, stocks

Back

stocks

Front

Which investment allows an investor to loan money to the government with low risk? Options: stocks, certificate of deposits, mutual funds, treasury bonds

Back

treasury bonds

Front

Higher the risk, Higher the return

Back

true