Personal finance investing

A certificate of deposit must be held for a set amount of time like 6 months or a year.

• True

• False

A share of stock represents ownership in a company.

• True

• False

The law requires all financial institutions to tell consumers the annual percentage yield on their accounts.

• True

• False

Inflation does not affect investment strategy.

• True

• False

A speculative investment greatly increases your chance of earning a profit or loss.

• True

• False

A mutual fund has the advantage of professional management and diversification.

• True

• False

Discount brokers provide all the services of regular brokers, but their services are generally less expensive.

• True

• False

What do financial experts recommend an individual have in a savings account for emergencies?

• 1 - 2 months income

• 3 - 6 months income

What does "pay yourself first" mean?

• An individual should consider savings to be a fixed expense

• An individual should consider savings to be a variable expense.

Which cash management tool typically has the highest rate of return?

• Money Market savings account

• Savings account