Financial Literacy Quiz

What is the Fifth Foundation?

• Pay cash for your home

• Build wealth and give.

• Save for retirement.

• Pay cash for college.

A security that represents part ownership of a company is called a(n) __________.

• Stock

• Bond

• Certificate of Deposit

• Annuity

When you invest in a mutual fund, you are contributing to a pool of money that will be __________.

• Given to hundreds of local charities in your area

• Invested in a mix of stocks, bonds and money market accounts

• Taxed based on each individual investor's annual salary

• Put into a separate savings account for your children to inherit someday

Diversification reduces your __________ by using a mix of investment types in your portfolio.

• Income

• Retirement funds

• Risk

• Mutual funds

__________ is the process of figuring out how much money you'll need in retirement and creating a plan to get there.

• Investment banking

• Outrageous generosity

• Retirement planning

• Retirement accounting

__________ is the cure for __________.

• Investing wisely; estate planning

• Love; the income gaps in our society

• Generosity; selfishness

• Selfishness; thinking of others first

Investing your money earns you more money because of __________.

• Checking accounts

• Mortgage payments

• Compound growth

• Short-term savings

Before you invest, you should make sure a mutual fund has done well for 5-10 years.

• True

• False

When dealing with the stock market's volatility, what is advisable?

• Invest continuously without worry

• Trust the S&P as a reliable source

• Recognize it's unpredictable and risky

• Expect it to level out consistently

Roth IRA, 401(k), 403(b), 457, and Simplified Employee Pension are all examples of what?

• Tax forms

• Mutual funds

• Retirement plans

• Investment bankers