Chapter 8 Investing and Retirement Quiz

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

• True

• False

In some cases, employers will match the employee contribution, but you should fund your plan whether your company matches or not. This statement refers to:

• Single stocks

• Roth IRA

• Bond Funds

• 401k

When the stock market is trending upwards it is referred to as what kind of market?

• Lion

• Bear

• Tigers

• Bull

If you get into financial trouble, borrowing against your retirement plan is a good option.

• True

• False

You should start investing as soon as you have your college education funded.

• True

• False

A young investor willing to take moderate risk for above-average growth would be most interested in:

• Single Stocks

• Bonds

• Mutual Funds

• Real Estate

If your company provides a 6% employer match, how much should you personally contribute to your 401(k) if you earn $50,000 (not including the money the company contributed).

• $1,000

• $2,000

• $3,000

• $4,000

Company X's board of directors has decided to issue a portion of its earnings to its shareholders. If you own stock in Company X, you can expect to receive a(n):

• Investment

• Dividend

• Buy-out

• Yield

A retirement plan found in nonprofit organizations such as churches, hospitals, and schools.

• Roth IRA

• 457

• 401(k)

• 403(b)

You can start investing with a small amount of money.

• True

• False