MM Final Exam Review Questions

The more liquid an investment, the __________ return

In order to reduce your risk, you need to __________

• diversify

• decrease your investments

• increase your investments

• increase your reward

If you don't want to pay taxes on your withdrawals from your retirement account, you need a:

• 401K

• Roth IRA

• Traditional IRA

• Rollover IRA

When your employer matches your retirement savings contributions, you have a:

• 457

• 441

• 401K

• 403B

When you save up money over time to purchase a large item, or another goal you have in mind, you use a:

For teenagers, a fully funded emergency fund should be $___________

True or False: An emergency fund will bring a sense of financial security.

• True

• False

Which of the following is a consequence of overdrawing your checking account?

• Bounced check fee from the store

• Stress from money mismanagement

• Overdraft fee from your bank

• Extra money in your account

True or False: A budget is meant to summarize the saving and spending that has taken place over the past year.

• True

• False

True or False: A cash flow statement summarizes all of the income and outgo (spending) over a certain time period.

• True

• False