PF U8 Diversifying My Future Test

Front

What is the approximate doubling time for an investment earning a 6% annual interest rate, according to the Rule of 72?

Back

12 years

Front

What is investing?

Back

Using long-term savings to earn a financial return.

Front

What is one of the main objectives of the Wall Street Reform Act?

Back

To prevent another financial crisis by increasing regulation of the financial industry

Front

What is inflation?

Back

A rise in the general level of prices

Front

How does investing help beat inflation?

Back

By growing faster than the inflation rate

Front

What is an investment portfolio?

Back

A collection of investments

Front

What is investment risk?

Back

The chance that an investment’s value will decrease.

Front

What is diversification?

Back

Spreading risk among many types of investments

Front

Choose the correct steps for finding the gain in principal profit for return on investment: Purchase Price, Sales Price, Profit in Dollars, ROI

Back

Purchase Price, Sales Price, Profit in Dollars, ROI

Front

What is the first stage of investing?

Back

Put-and-take account