Ch 8 Practice Test

Properly diversified, long-term investments include what types of mutual funds?

• Growth

  Growth and Income

  International

  Aggressive growth

• Growth

  balanced

  international

  bond

• international

  bond

  aggressive growth

  growth

• Growth

  growth and income

  bond

  aggressive growth

Select all the "horrible" investments.

• viaticals

• gold

• mutual funds

• futures

What is TRUE about liquidity?

• more liquid, more return

• more liquid, less return

• less liquid, less return

When a company issues a portion of its earning to shareholders, it's called _________.

• investment

• buy-out

• dividend

• yeild

Savings accounts and money market accounts are best for which of these?

• long-term investments for retirement

• earning a high rate of return

• avoid savings accounts and money market accounts because they are high risk

• emergency funds and short term goals

Why should you diversify your investments?

• to reduce tax liability

• to reduce risk

• to increase return

• to increase risk

Which one would make sure your retirement savings will not be taxed upon withdrawal?

• ROTH IRA

• 401K

• Traditional IRA

• Annuity

Which of the following is a retirement plan found in nonprofit organizations?

• IRA

• 457

• 403B

• 401K

Employee benefits packages.....

• are not important to consider when looking for a job.

• do not include retirement plans.

• are the same for every employer.

• are non-wage compensations provided to employees in addition to their salary.

Which is a savings account sold by an insurance company?

• money market

• mutual fund

• single stock

• annuity