Chapter 2 Multiple Choice Flashcards
Liquidy means to spread around and lower risk
T/F
False that’s diversification
A single stock is the best place to keep your emergency fund
T/F
False
A certificate of deposit is the best place to keep an emergency fund
T/F
False
Diversification lowers your risk with investing
T/F
True
Commodities and futures are extremely speculative and carry a high-risk
T/F
True
What percent of any ten-year period in the stock market has made money
100%
Long-term investments properly diversified include the following mutual funds
Growth
Growth and income
International
Aggressive growth
What is the kiss rule of investing
Keep it simple stupid
Which of the following is not a good investment
A) Gold
B) viaticals
C) futures
D) all of the above
D
Which statement is true about liquidity
A) The less liquid the investments, the less return
B) Be more liquid an investments, The more return
C) The more liquid an investment, The less return
D) Both a and B
C
Which is not a type of annuity
A) Variable
B) Stable
C) Fixed
D) None of the above
B
A savings account with a certificate is a…
C.D
Why do you look at the long-term track record with a mutual fund
To be sure that it’s safe and reliable
What are some investments that don’t give you a higher rate of return
Money markets, CDs, at Bonds
List 4 types of investments that you should always avoid
1) Commodities
2) day trading
3) goals
4) future
