Saving and Investing Test

Front

When you diversify your investments it means you

Back

You put your money into many different types of investments

Front

Which of the following statement is TRUE?
Options:
Savings and investing is only for wealthy people.
Savings and investing is important for people of all income levels.
Savings is only for people with limited income and investing is for people with high levels of income.
Savings is only for people with high levels of income and investing is for people with limited income.

Back

Savings and investing is important for people of all income levels.

Front

Liquidity is defined as

Back

how easy it is to turn an item into cash without losing any money

Front

Which of the following BEST describes diversifying a portfolio? Buying stocks every year in the same company, Buying corporate bonds and stocks in the same company, Buying stocks in several different companies, Putting all of your money in a safe investment.

Back

Buying stocks in several different companies

Front

Risky investments

Back

May lead to a larger return on investment

Front

A mutual fund is

Back

An investment in a diversified group of stocks

Front

Which is the least risky? Options: Stock, CD, Savings account, Mutual fund

Back

Savings account

Front

Don't put all your eggs in one basket best refers to which of the following pieces of advice: Diversify your stock portfolio in order to reduce risk, Invest in a single stock for the largest gain, Take out as many loans as you can, Don't hesitate when buying stocks

Back

Diversify your stock portfolio in order to reduce risk

Front

Your credit score will be significantly lowered if you: You miss a loan payment, Buy a house, Take out a loan, Go to college

Back

miss a loan payment

Front

A key difference between saving and investing is

Back

Saving is for emergencies & goals, investing is for long-term wealth