Saving to Invest, Investing to Retire

Front

Nick is an investor who is worried about how inflation might affect his portfolio. Which statement best describes inflation?

Back

The rise in the overall price level of goods and services

Front

Using the Rule of 72, what interest rate would double Ron's money in 36 years?

Back

2%

Front

What is a mutual fund?

Back

A group of investments sold as a package.

Front

What is the Dow Jones Industrial Index?

Back

A stock market index based on 30 of the largest companies in the United States.

Front

What is a bond?

Back

A loan an investor makes to a corporation or government that pays interest over time.

Front

Diversification is important in investing because…

Back

It helps you to balance your risk across different types of investments.

Front

Which statement is true about liquidity? Options: The less liquid the investment, the less return. The more liquid an investment, the more return. The more liquid an investment, the less return. Both a and b.

Back

The more liquid an investment, the less return.

Front

Which statement is the most correct description of liquidity?

Back

How quickly and easily an asset can be converted into cash

Front

Which of the following is incorrect about stock market investment? Investors can buy and sell stocks in the stock market., The price of a stock is determined by supply and demand in the market., Investing in stocks can lead to financial loss., Investing in stocks guarantees a fixed return.

Back

Investing in stocks guarantees a fixed return.

Front

Who are public pension plans for? Are they for: People like her, federal government workers?, Her friend, a railroad employee?, Her uncle, who works at the Veterans Administration?, All of these people?

Back

All of these people?