James 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? Roth IRA, Traditional IRA, 401k, 529 Plan

Back

Roth IRA

Front

What is an advantage of investing in a mutual fund rather than shares of stock?

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 rates could be higher than the interest rate

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 borrow from the government with low risk?

Back

treasury bonds

Front

Higher the risk, Higher the return

Back

true