Font size
WorksheetsEverFi Marketplaces Module 5: Investment Game Review
Total questions: 30
Worksheet time: 15mins
What is a brokerage account?
An online account used to pay expenses.
A deposit account at a financial institution that allows withdrawals and deposits.
An interest-paying deposit account at a financial institution that provides a modest interest rate.
An account used to buy investments like stocks, bonds, and mutual funds.
A _________ account is an account you use to buy investments like stocks, bonds, and mutual funds.
full-service
checking
brokerage
savings
What kind of account would you need to open if you wanted to buy investments like stocks, bonds, and mutual funds?
A checking account
A savings account
A brokerage account
A margin account
Investors with a ______ risk tolerance may have a long time horizon and are usually looking to maximize their returns in the stock market.
High
Medium
Low
Flat
Investors with a ______ risk tolerance may have a an intermediate time horizon and are usually looking for a mix of safety and growth in their investment portfolio.
High
Medium
Low
Flat
Investors with a ______ risk tolerance may have a short time horizon and are usually looking to maintain the value of their investments with minimal growth.
High
Medium
Low
Flat
Which of the following is NOT an example of investing in yourself?
Signing up for an online class.
Attending an after-school club in a subject that interests you.
Investing your money in the stock market.
Reading books about topics you want to learn more about.
What does it mean to “invest in yourself”?
Investing in yourself means putting time and money toward your own personal growth.
Investing in yourself means taking the time to establish your financial goals.
Investing in yourself means taking the time to plan out your investment strategy.
Investing in yourself means putting a portion of all the money you earn into a savings account.
Which of the following is an example of investing in yourself?
Taking the time to learn how to create a budget.
Investing your money in the stock market.
Planning out your financial goals.
Signing up for an online class.
If the stock market goes down during a recession, you should sell all of your investments to minimize your losses.
True
False
If the stock market goes down during a recession, you should focus on the long-term horizon and ensure your portfolio is well-diversified to minimize losses.
True
False
You should sell all of your investments if the stock market goes down during a recession—especially since the stock market rarely recovers after a recession.
True
False
What is an equity fund?
A mutual fund that is primarily invested in large-cap companies.
A mutual fund that is primarily invested in stocks.
A mutual fund that is primarily invested in bonds.
A mutual fund that invests in a mix of stocks and bonds.
A(n) _______ fund is a mutual fund that is primarily invested in stocks.
Balanced
Money market
Capital
Equity
Which type of mutual fund has the highest allocation toward stocks?
Balanced fund
Equity fund
Money market fund
A fixed income fund
If you were looking to invest in a mutual fund with strong growth, what type of mutual fund would you invest in?
An equity fund
A balanced fund
A fixed income fund
A money market fund
If you were looking to invest in a mutual fund with a mixture of growth and safety, what type of mutual fund would you invest in?
An equity fund
A balanced fund
A fixed income fund
A money market fund
If you were looking to invest in a mutual fund focused on safety and minimal growth, what type of mutual fund would you invest in?
An equity fund
A fixed income fund
A money market fund
If you’re carrying debt that charges a high interest rate, you should prioritize paying off the debt instead of maximizing your investment contributions.
True
False
If you’re carrying debt that charges a low interest rate, you should prioritize paying off the debt and only make investment contributions when the debt is paid off.
True
False
If you’re carrying debt, you should always pay the minimum loan amount so that you can maximize your investment contributions.
True
False
Imagine you are 25 years old and have a long investment time horizon. What type of mutual fund would NOT be best for your portfolio?
An equity fund
A money market fund
An index fund
A market cap equity fund
Equity funds, index funds, and market cap equity funds are best for which type of investor?
Investors with a low risk tolerance.
Investors who are close to retirement.
Investors who want to protect the value of their investments.
Investors with a long time horizon.
Frank is an investor with a long time horizon and high risk tolerance. Which type of mutual fund would be best for his portfolio?
A fixed income fund
A money market fund
An equity fund
A balanced fund with a high bond allocation
Imagine you are 5 years away from retirement. What type of mutual funds would be best for your portfolio?
An equity fund
A fixed income fund
A balanced fund with a high bond allocation
Fixed income and money market funds are best suited for which type of investor?
Investors with a long time horizon.
Investors with high risk tolerance.
Investors with a short time horizon.
Investors who want strong growth.
Ann is an investor with a short time horizon and low risk tolerance. Which mutual funds would be best for her portfolio?
Fixed income funds
Money market funds
Balanced funds with a high bond allocation.
All of the above
Why is it important to adjust the asset allocation of your investment portfolio as you get closer to retirement?
To maximize your investment earnings to make up for any investment losses during your lifetime.
To protect your investment earnings in case the stock market goes down.
Both A and B
Neither A nor B
Which of the following statements is FALSE?
Your retirement portfolio should have a higher allocation toward stocks right before you retire.
You should try to maximize your investment earnings right before you retire.
Both A and B
Neither A nor B
Which of the following statements is TRUE?
Your portfolio should have a higher allocation toward bonds and cash equivalents right before you retire.
You should try to maximize your investment earnings right before you retire.
Both A and B
Neither A nor B
