Investing

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

• Single Stock

• Bonds

• Mutual funds

• Real estate

If you leave a job and have money saved in your employer's retirement plan, always roll that money into an IRA using a direct rollover which allows you to avoid taxes and penalties.

• True

• false

A mutual fund portfolio that is properly diversified will have all investment dollars located in just one of four different classes of financial assets

• True

• False

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

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

• True

• False

Which statement is false about liquidity?

• A. The more liquid an investment, the more return

• B. The less liquid an investment, the less return

• C. The more liquid an investment, the less return

• Both A and B

A savings plan operated by a state or educational institution designed to help families set aside funds for future college cost

• 529 plan

• Guaranteed investment contract

The benefit of diversification in your investment is

• reduced risk

• reduced tax liability

• increased return

• increased risk

The government agency responsible for regulating the stock market

• federal reserve

• securities exchange commission

Saving and investing have nothing to do with the amount of money you make

• True

• False