Financial Literacy Investments

_____________ contributions are tax-deductible on both state and federal tax returns for the year you make the contribution; withdrawals in retirement.

• IRA
• Roth IRA
• Traditional IRA
• 401K

One hundred share of Walmart is an example of

• Mutual funds
• Bonds
• Stocks
• Certificate of Deposits

Inflation is

• a sustained increase in the general level of prices for goods and services.
• a sustained decrease in the general level of prices for products and services

___________ provide no tax breaks for contributions, but earnings and withdrawals are generally tax-free.

• Traditional IRAs

• Roth IRAs

• 401K

• 403b

-The single term used to describe how easy it is to convert assets to cash.

• mutual funds

• emergency fund

• conversion

• liquidity

A key to successful money management is

• savings

• discipline in purchases

• having a budget

• all of the above

What you give up when you make an investment decision is known as

• economic choice

• opportunity cost

• cost

• your wants

What factors influence the rate of return on investments

• inflation

• the economy

• the performance of the companies that are represented in your investment portfolio

• all of the above

The time value of money (TMV) basically means

• your dollar is worth more tomorrow than today

• your dollar is worth more today than it will be tomorrow

• your dollar is worth the same today as it will be tomorrow

• None of the above

________________ is the least liquid of investments

• real estate

• mutual funds

• bonds

• stocks