TEST Saving to Invest, Investing to Retire

​ ​ (a)   Earnings on a traditional (regular) IRA are tax-exempt.

• True
• False

​ (a)   Never borrow money to invest.

• True
• False

​ (a)   A single stock is the best place to keep your emergency fund.

• False
• True

​ (a)   Individuals with an aggressive investment philosophy are not willing to take on risk for the potential of higher returns.

• False
• True

​ (a)   Stocks are considered a riskier investment than bonds.

• True
• False

​ A ​ (a)   is a high risk investment that is banking on someone dying in a certain amount of time

• viatical
• Annuity
• Saving Account
• Mutual Fund

Based upon risk factors, reorder the following investments from HIGH to LOW risk.

• Collectibles

• Mutual Funds

• Stocks

• Bonds

The dollar amount that the bondholder will get at the bond’s maturity date called ​ (a)   .

• face value
• Equity value
• Liquidity value
• Principal

As an investor (according to our pyramid), with higher risk comes the potential to ​ (a)   .

• earn higher returns
• Lower prices
• Fight inflation rates
• Earn lower returns

What is a stock broker?