Investment Knowledge Check

Front

What is a 401(k) plan?

Back

An employer-sponsored retirement plan

Front

Which retirement plan is offered by public schools and other nonprofit organizations?

Back

403(b) plan

Front

What does a bond represent?

Back

A loan made by an investor to a borrower

Front

What is a bear market?

Back

A prolonged drop in investment prices.

Front

_________________ acts as a go-between for investments and securities exchange.

Back

Broker

Front

What characterizes a bull market?

Back

Rising asset prices and consumer confidence

Front

What is a commodity?

Back

A basic good used in commerce

Front

What does diversification involve?

Back

Spreading investments across different asset types

Front

What is dollar cost averaging?

Back

Investing a fixed dollar amount at regular intervals

Front

What are exchange traded funds (ETFs)?

Back

A pooled investment fund traded on exchanges.