Front

When purchasing stock, a person should be aware that:

Back

There is no guarantee that the price of the stock will go up

Front

What is a good strategy to build wealth for the future?

Back

Deposit money into both savings and investment accounts each month

Front

It is usually a good idea to borrow for

Back

Something that increases in value over time

Front

Why will a person investing 3% of a $31,000 salary each year in a 401(k) starting at age 25 have much more money at age 70 than someone who waited until age 50 to invest 3% each year of a $55,000 salary?

Back

The invested money has had a longer period of time to benefit from compounding and investment gains.

Front

The reason corporations issue bonds is to

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Borrow money from investors

Front

Why do investors buy stocks that pay dividends?

Back

Investors receive payments from the company during the year.

Front

When the stock market has been rising and investors are confident, expecting stock prices to continue rising, it is described as a

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Bull Market

Front

A public corporation announced today that it lost a major lawsuit. As a result, it is most likely that the

Back

Price of their stock will decrease

Front

Who suffers the LEAST when the rate of inflation increases? Options: People who buy goods and services with credit cards, People who have a loan with a fixed-interest rate, People who need to borrow money, People who are unemployed

Back

People who have a loan with a fixed-interest rate

Front

Mutual funds are:

Back

An investment that holds a wide range of different investment instruments, providing diversification