Personal Management Part 2

Which is a property of investing?

• Usually an interest rate of 1%

• High risk and high return

• Rarely lose money

• Low risk and high return

What is a general definition of interest?

• A percentage of your initial amount of money that gets added back to the total at the end of each period

• principal amount multiplied by the rate of interest and the number of periods

• interest paid on top of the interest that you’ve gained in the past

• the state of wanting to know or learn about something or someone

Which of the following is not associated with Disassociation?

• buying a balanced portion of both of these types of investments so that your risk is distributed

• many different investments in different sectors

• Investing in one large company

• Don’t put all your eggs in one basket

What is the best advice for retiring?

• Gratifying as soon as possible

• Saving and investing over the course of your career

• Using only simple interest to invest

• Do a every time you run out of money

Which of the following are options when dealing with stocks?

• Keeping the stock to let it lose money

• Selling the stock

• Holding the stock

Which is not a property of Mutual Funds?

• managed by a professional investor

• Benefits lie in diversification

• charge an annual fee for ownership

• Are better than Index Funds

Which is not a property of Life Insurance?

• Two different types of Life Insurance,term and whole life insurance.

• Will financially provide for your entire family if you die

• Whole life is more expensive than term life insurance

• Is considered an investment

What is a property of Certificates of Deposits?

• One of the safest investments

• lower terms have higher interest rates

• Good investment if you need money in the short term

• There are no penalties for removing your money earlier

Which of the following is true about Savings accounts?

• It takes lots of time to access your money in a Savings account

• There are unlimited number of times a person can withdraw from a savings account

• Your money is considered solid

• Has higher interest rates than checking accounts

Are there different types of bonds?

• Yes

• No