financial planning

Ownership investments are ideal for investors who are:

• A

  risk-averse.

• B

  risk-tolerant.

• C

  close to retirement.

• D

  just beginning to invest.

Investors take a risk for the potential of receiving a:

• A

  bonus.

• B

  prize.

• C

  promotion.

• D

  return.

Brian recently got his first part-time job as a food bagger at a local grocery store. He needs a safe place to store his income that allows him to withdraw money easily and frequently. Brian should consider opening which type of account?

• savings

• checking

• health savings

• individual retirement

The purpose of the risk pyramid is to show a comparison of:

• A

  one stock to another.

• B

  one investment to another.

• C

  stocks to stock mutual funds.

• D

  corporate bonds to municipal bonds.

Which is an advantage of a money market account over a savings account?

• A

  The rate of return on a money market account is significantly better.

• B

  Money market accounts provide corporate ownership rights.

• C

  One can often write checks from a money market account.

• D

  Money market accounts are insured by the FDIC.

A marketplace where trading of securities such as equities, bonds, currencies, and derivatives occurs is referred to as a:

• A

  call market.

• B

  bear market.

• C

  financial market.

• D

  foreign exchange market.

Chris wants to open a small business, and he has a very good business plan that is likely to succeed. Where would Chris be most likely to go to apply for a loan?

• A

  local bank

• B

  national bank

• C

  insurance provider

• D

  mortgage company

Which statement is true about certificates of deposit?

• A

  They may depreciate in value.

• B

  The riskiest investment is a certificate of deposit.

• C

  One must pay a penalty for withdrawing money early.

• D

  Certificates of deposit are issued by corporations or governments.

Successful bank managers and supervisors typically began their employment as:

• A

  apprentices

• B

  programmers

• C

  tellers.

• D

  volunteers.

Which is an example of a lending investment?

• bonds

• stocks

• antiques

• real estate