EverFi Marketplaces Module 5: Investment Game Review

What is a brokerage account?

• An online account used to pay expenses.

• A deposit account at a financial institution that allows withdrawals and deposits.

• An interest-paying deposit account at a financial institution that provides a modest interest rate.

• An account used to buy investments like stocks, bonds, and mutual funds.

What kind of account would you need to open if you wanted to buy investments like stocks, bonds, and mutual funds?

• A checking account

• A savings account

• A brokerage account

• A margin account

Investors with a ______ risk tolerance may have a long time horizon and are usually looking to maximize their returns in the stock market.

• High

• Medium

• Low

• Flat

Investors with a ______ risk tolerance may have a an intermediate time horizon and are usually looking for a mix of safety and growth in their investment portfolio.

• High

• Medium

• Low

• Flat

Investors with a ______ risk tolerance may have a short time horizon and are usually looking to maintain the value of their investments with minimal growth.

• High

• Medium

• Low

• Flat

What does it mean to “invest in yourself”?

• Investing in yourself means putting time and money toward your own personal growth.

• Investing in yourself means taking the time to establish your financial goals.

• Investing in yourself means taking the time to plan out your investment strategy.

• Investing in yourself means putting a portion of all the money you earn into a savings account.

Which of the following is an example of investing in yourself?

• Taking the time to learn how to create a budget.

• Investing your money in the stock market.

• Planning out your financial goals.

• Signing up for an online class.

If the stock market goes down during a recession, you should sell all of your investments to minimize your losses.

• True

• False

If the stock market goes down during a recession, you should focus on the long-term horizon and ensure your portfolio is well-diversified to minimize losses.

• True

• False

You should sell all of your investments if the stock market goes down during a recession—especially since the stock market rarely recovers after a recession.

• True

• False