Investing and Retirement Quiz

The practice of dividing money a person invests between several types of investments to lower risk is called....

• Investing in single stocks

• Diversification

• Growth stocks

• Aggressive growth stocks

True or False: Dave Ramsey says you should keep investing simple.

• True

• False

True or False: Borrowing money to help invest is a good idea.

• True

• False

The relationship between a reward and the risk taken to attain it is called......

• A mutual fund

• Risk-return ratio

• A single stock

The ability to convert an asset into cash without losing any value of the asset is called....

• Risk-return ratio

• Large-cap fund

• Liquidity

• Bonds fund

Money market accounts include:

• CD's

• Treasury Bills

• Commercial Papers

• All of the above

A savings account with a slightly higher interest rate with a longer term commitment is called...

• A mutual fund

• A CD

• A bond

Fill in the blank: A CD is ______ risk

• High

• Medium

• Low

Fill in the blank: A single stock is ______ risk

• High

• Medium

• Low

A debt instrument where a group owes you money (an I.O.U), and you receive regular interest payments and a promise to redeem monies borrowed is called...

• A bond

• A CD

• A mutual fund

• Small Cap stock