Summative Assessment: Wealth, Investing, & Legacy

Circle T if the statement is true, or F if the statement is false: Liquidity refers to how quickly an asset can be converted into cash without losing value.

• True

• False

Circle T if the statement is true, or F if the statement is false: A Certificate of Deposit (CD) is the most liquid type of savings account available.

• True

• False

Circle T if the statement is true, or F if the statement is false: Common Stock grants the shareholder voting rights within the corporation.

• True

• False

Circle T if the statement is true, or F if the statement is false: In a Bear Market, stock prices are generally rising and investor confidence is high.

• True

• False

Circle T if the statement is true, or F if the statement is false: A Roth IRA provides tax-free growth, meaning you do not pay taxes on qualified withdrawals at retirement.

• True

• False

Circle T if the statement is true, or F if the statement is false: Diversification is a strategy used to increase risk by putting all money into one high-performing stock.

• True

• False

Circle T if the statement is true, or F if the statement is false: If you withdraw money from a CD before the term is up, you will likely face a financial penalty.

• True

• False

Circle T if the statement is true, or F if the statement is false: An Executor is the person responsible for carrying out the instructions left in a Will.

• True

• False

Circle T if the statement is true, or F if the statement is false: Capital Gains are the losses incurred when you sell an asset for less than you paid for it.

• True

• False

Circle T if the statement is true, or F if the statement is false: False advertising by a bank is both unethical and illegal.

• True

• False