C12L1

What is the process of setting money aside to increase wealth over time for long-term financial goals called?

• Investing

• Budgeting

• Saving

• Spending

What does ROI stand for in investing?

• Rate of Interest

• Revenue on Investment

• Return on Investment

• Return on Income

What is a liquid asset?

• An asset that is always profitable

• An asset that is not taxable

• An asset that is difficult to sell

• An asset that can be easily bought or sold

According to the text, what is retirement considered to be?

• A smart person thing

• An old person thing

• A young person thing

• A rich person thing

What is the Fifth Foundation mentioned in the text?

• Invest in stocks

• Build wealth and give

• Save money

• Retire early

What is the goal when you invest?

• To avoid taxes

• To earn a positive return on investment

• To break even

• To lose money

What is the benefit of starting to invest early?

• Higher taxes

• Immediate wealth

• More opportunities for growth

• Less risk

What is the value of liquidity in an asset?

• It increases the asset's value

• It guarantees a high return

• It makes the asset risk-free

• It allows the asset to be easily converted to cash

What happens if you cash out retirement investments too soon?

• You get hit with expensive taxes and penalties

• You avoid all taxes

• You receive a bonus

• You double your investment

What percentage of non-retired Americans have no money saved for retirement?

• 25%

• 50%

• 75%

• 10%