Financial Literacy Quiz

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

When you invest, your goal is to earn a negative rate of return on investment.

It's okay to borrow money from your retirement account, but don't borrow money to invest in it.

You should wait to be generous until you have money to give.

What is The Fifth Foundation?

• Pay cash for your home

• Build wealth and give.

• Save for retirement.

• Pay cash for college.

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

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

• Stock

• Bond

• Certificate of Deposit

• Annuity

Investing your money earns you more money because of . . .

• Checking accounts

• Mortgage payments

• Compound growth

• Short-term savings

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