Personal Finance, Ch. 8, Sec. 2.3

Which of the following is a good investment option?

• Gold

• Viaticals

• Mutual funds

• Futures

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

• a Roth IRA

• a 401(k)

• an annuity

• a traditional IRA

The stock market is a generic term that encompasses the trading of securities.

• True

• False

Formed in 1792, the New York Stock Exchange (NYSE) is the smallest organized stock exchange in the United States.

• True

• False

The Dow Jones Industrial Average is one measure of the stock market.

• True

• False

The terms bull market and bear market describe upward and downward market trends.

• True

• False

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

• Mutual fund

• Money market

• Single stock

• Annuity

Money that is invested, either tax deferred or tax free, within a retirement plan.

• Tax-favored dollars

• Dividend

• Share

• Money market

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

• Guaranteed Investmet Contract

• 401(k)

• 529 Plan

• Mutual Fund

You have to make a lot of money to be eligible to invest in an IRA.

• True

• False