Consumer- Chapter 8 Flashcards
long-term investments properly diversified include the following mutual funds…
growth, growth and income, international, excessive growth
Which of the following is a good investment option?
mutual funds
Which statement is true about liquidity?
both a and b
A reason that people need to save and invest is to…
enable their money to make money
Company X’s board of directors has decided to issue a portion of its earnings to its shareholders. If you own stock in Company X, you can expect to receive a(n)…
dividend
The benefits of diversification in your investment is…
reduce risk
To ensure that some of your retirement savings will not be subject to income tax among withdrawal you will contribute to a what?
Roth IRA
A young investor willing to take the moderate risk for above-average growth would be most interested in…
mutual funds
In some cases, employers will match employee contributions but you should fund your plan whether your company matches or not, this refers to…
401K
A retirement plan found nonprofit organizations such as churches, hospitals, and schools…
403B
When buying and selling investments you should not…
switch your investment strategy often based on market conditions
Employee benefits packages should…
non-wage compensation provided to employees along with their regular wages
A savings account sold by an insurance company designed to provide payments to the holder in specific intervals to save money usually after retirement…
annuity
Which of the following statements about the stock market is false?
Formed in 1792, the New York Stock Exchange (NYSE) is the smallest organized exchange in the United States
T or F: Money markets are great for emergency funds due to their liquidity and stability
true