Personal Finance Review

Who contributes to 401K’s?

• employees and employers

• parents

• the government

• no one

Risk can be defined as

• the potential for good fortune

• the potential for profit

• the potential for loss

• the potential for gain

What happens if you withdraw money from your retirement account early?

• amount withdrawn will be taxed at your current income tax rate & you may pay a penalty-

• nothing will happen

• you loose interest

• you loose your investment

What is the best type of investment for someone nearing retirement?

• stocks

• mutual funds

• bonds

• real estate

Who contributes to IRA’s?

• individuals only

• employers only

• the government

• individuals and employers

Although banks typically pay low interest rates, you can earn more money from a bank if you put money into

• an interest-baring checking account

• a savings account

• a CD (certificate of deposit)

• skip the bank & put the money under the matress

When is the best time to start planning for your retirement?

• as early as possible & by your early 20s

• as late as possible & close to the retirement party

• in your 40s after you have all the children you plan to have

• in your 60's when you start keeping your grandchildren

Which of these investments carries the most risk?

• savings account

• Bonds

• stocks

• Certificates of Deposit (CDs)

Who owns a commercial bank?

• government

• depositors

• bank president

• stock holders

A lender's requirement to guarantee repayment of a loan is referred to as

• credit

• down payment

• collateral

• loan