Introduction to Investing

What is the #1 weapon for successful investing, especially for retirement?

• Diversification

• Time

• Stocks

• Bonds

When talking about investing, what is the relationship between time and money?

• More Time = Less Money

• More Time = More Money

• More Time = More Risk

• More Time = More Debt

What does "Investing" mean in the context of finance?

• Spending money on goods and services

• Saving money without expecting any returns

• Saving money in a way that earns money

• Borrowing money for personal use

What is "Return on Investment" (ROI)?

• The interest rate on a savings account

• The initial amount of money put into an investment

• The profits or losses from an investment

• The fees associated with managing an investment

What does the "Risk-Return Ratio" refer to?

• The ratio of investment to the savings account

• The level of risk an investment has in relationship to the profits you can expect

• The ratio of profits from two different investments

• The ratio of risk between stocks and bonds

Typically speaking, what do high risk investments equate to?

• Low returns and major losses

• High returns or major losses

• Little to no losses or little returns

• Stable returns with no risk

What are low risk investments generally associated with?

• High returns or major losses

• Low returns and major losses

• Little to no losses or little returns

• High risk and high returns

What are liquid assets?

• Assets that are physically liquid

• Investments that take a long time to convert into cash

• Items or investments that can easily be turned back into cash

• Assets that can only be sold at a loss

Which of the following is considered the most liquid asset?

• Real estate

• Stocks

• Bonds

• Cash

What is a problem with today's employer-offered retirement plans?

• They are too complicated to understand.

• They are not offered by most employers anymore or do not earn enough to fulfill retirement goals.

• They require too much personal contribution.

• They are only available to a select group of employees.