Dave Ramsey Chapter 8 Investing & Retiring Review

Long-term investments, properly diversified, include the following mutual funds:

• Growth, balanced, international, Bond
• Growth, growth and income, international, aggressive growth
• International, bond, aggressive growth, growth
• Growth, growth and income, bond, aggressive growth

Which of the following is a good investment option?

• Goal
  Gold
• Mutual Funds
• Viaticals
• Futures

Which statement is true about liquidity?

• The more liquid an investment, the more return
• The less liquid the investment, the less return
• The more liquid an investment, the less return
• Both A and B

A reason that people need to save and invest is to:

• Enable their money to make money
• Increase the money supply
• Be able to get anything they want
• Have an opportunity to talk with financial service providers

Savings accounts and money-market accounts are most appropriate for:

• Long-term investments like retirement
• Earning a high rate of return
• Emergency funds and short-term goals
• Savings accounts and money-market accounts should be avoided since they carry high risk

Money markets are great for your emergency fund due to their liquidity and stability.

• True
• False

Saving and investing have nothing to do with the amount of money you make.

• True
• False

Tags

CCSS.RI.7.2

CCSS.RI.8.2

CCSS.RL.11-12.2

CCSS.RL.8.1

CCSS.RL.9-10.2

Quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money.

• risk

• liquidity

Vocab - Securities that represent part ownership or equity in a corporation. 

• stocks
• bonds

Tags

CCSS.RF.3.3B

CCSS.RF.3.3C

CCSS.RF.3.3D

CCSS.RF.4.3A

CCSS.RF.5.3A

Distribution of a portion of a companyʹs earnings, decided by the board of directors, to a class of its shareholders.

• Interest

• Dividend