Basic Investment considerations quiz

What is the goal for Credit unions?

• To bankrupt its customers!!!!!

• To benefit and help the people.

• To become a monopoly.

• Compete with other businesses.

Does life insurance apply to all ages?

• Only the elderly.

• Only adults over 21.

• Only children.

• All the above.

What are the best tips for Simplicity in a investment?

• Invest in all that benefits you with exagerated promises with positive feedback from the people.

• Ignore any that are complicated, or one that you don't understand.

• Ignore investments that sound to good to be true.

What is Diversification?

• To spread your funds over a variety of investments to decrease the loss of money.

• To give people money so they can give you interest.

• To go at many banks for good offers and deals.

Why is compound interest better than simple interest?

• Your money grows faster when its compounded

• You earn interest on top of more interest

• You get a higher fee to get compound interest

• Fewer use compound interest because its too complicated

What is considered a higher risk to invest in?

• Stock

• Bond

• Mutual fund

• Money market account

T/F Q.

The lower the risk the higher the return

• True

• False

How can you make money on stocks?

• A capital gain

• Dividends

• Interest

• Holding the stock at least 5 years

Is it important to invest money?

• Yes because you can compound your money for a longer term

• Its less riskier while your young so you know its safe

• Investing is a easy way to make money

• Investments are cheaper in the beginning

What are the difference between investing and saving?

• Saving is for everyone, investing are for the companies

• Savings has a guaranteed return, investments doesn't

• Savings are for goals and emergencies, investments are for long term wealth

• You get money back when lost for investmebts, savings does not