Dave Ramsey Ch. 8 Investments Pre-Test

Long-term investments, properly diversified, include the following mutual funds:

• Growth, balanced, international, Bond
• Growth, growth and income, international, aggressive growth
• International, bond, aggressive growth, growth
• Growth, growth and income, bond, aggressive growth

Which of the following is a good investment option?

• Goal
  Gold
• Mutual Funds
• Viaticals
• Futures

Which statement is true about liquidity?

• The more liquid an investment, the more return
• The less liquid the investment, the less return
• The more liquid an investment, the less return
• Both A and B

A reason that people need to save and invest is to:

• Enable their money to make money
• Increase the money supply
• Be able to get anything they want
• Have an opportunity to talk with financial service providers

Savings accounts and money-market accounts are most appropriate for:

• Long-term investments like retirement
• Earning a high rate of return
• Emergency funds and short-term goals
• Savings accounts and money-market accounts should be avoided since they carry high risk

To ensure that some of your retirement savings will not be subject to income tax upon withdrawal, you would contribute to:

• A 401(k)
• A Roth IRA
• An Annuity
• A traditional IRA

Which of the following statements about the stock market is false?

• The terms bull market and bear market describe upward and downward market trends.
• The stock market is a generic term that encompasses the trading of securities.
• The Dow Jones Industrial Average is one measure of the stock market.
• Formed in 1792, the New York Stock Exchange (NYSE) is the smallest organized stock exchange in the United States.

A savings account sold by an insurance company, designed to provide payments to the holder at specified intervals, usually after retirement.

• Money market
• Mutual fund
• Single stock
• Annuity

Money markets are great for your emergency fund due to their liquidity and stability.

• True
• False

The purpose of war bonds is to finance military operations during war time. The last time the United States issued war bonds was during the Vietnam War.

• True
• False