Dave Ramsey Chapter 10

Which is NOT true about investments?

• Never invest using borrowed money.

• Diversification will help lower the risk.

• Always invest only for tax savings purposes.

• Never invest only for tax savings purposes.

What is true about investing in single stocks?

• There is a low degree of risk.

• There is a high degree of risk.

• The risk is the same whether you invest in mutual funds or stocks.

• If the stock is from your employer, the risk is lower.

A collection of money from different investors, which is used to purchase stocks, bonds, or other investments and is managed by a fund manager, is called:

• Company Stock

• Annuities

• Mutual Funds

• Bonds

Which is a type of annuity?

• Variable

• Stable

• Fixed

• Both a and c

The most aggressive mutual funds tend to be from:

• Companies that are a little younger and growing

• Companies that are overseas

• Companies that are older and well-established

• All of the above

What is the best option if you begin losing money in your mutual fund?

• Call your broker and switch your funds.

• Pull everything out and open a certificate of deposit at the bank.

• Leave it alone, but stop investing money in the fund.

• Leave it alone and continue to invest money in the fund.

Which of the following is a risk to consider when investing?

• You could lose all of your money

• Inflation

• Your money is not liquid

• All of the above

Match each fund with its description below.

• Mid-Cap

• Growth Funds

• Large -Cap

• Growth and income funds

• Small Cap

• Aggressive Growth Funds

Investments are _____ 5 years.

• less than

• always

• more than

Savings plans should be ________ 5 years.

• less than

• more than

• extended