Module 2 Financial Planning

Ownership investments are ideal for investors who are:

• risk-averse

• risk-tolerant

• close to retirement

• just beginning to invest

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

Investors take a risk for the potential of receiving a:

• bonus

• prize

• promotion

• return

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

• one stock to another

• one investment to another

• stocks to stock mutual funds

• corporate bonds to municipal bonds

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

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

• Money market accounts provide corporate ownership rights

• One can often write checks from a money market account

• 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:

• call market

• bear market

• financial market

• foreign exchange market

The direction of a client's cash and securities by a financial services company, usually an investment bank, or an individual is known as:

• a lock box

• a vendor lease

• private placement

• asset management

Successful bank managers and supervisors typically began their employment as:

• apprentices

• programmers

• tellers

• volunteers

Proofing, encoding, capturing, and sorting are all steps in which banking process?

• check payment

• consumer lending

• cash management

• commercial lending

Which is an example of a lending investment?

• bonds

• stocks

• antiques

• real estate