Dave Ramsey - Of Mice and Mutual Funds - Chapter 9

Question 1

Keep it _____, _____!

Answer 1

simple, stupid

Question 2

It does not mean that you are stupid if you make _____ investments

Answer 2

simple

Question 3

Never invest purely for _____ _____

Answer 3

tax savings

Question 4

Never invest using _____ money.

Answer 4

borrowed

Question 5

Diversification means to _____ _____.

Answer 5

spread around

Question 6

Diversification _____ risk.

Answer 6

lowers

Question 7

With virtually all investments, as the _____ goes up, so does the potential _____.

Answer 7

risk, return

Question 8

When discussing investments, liquidity is _____.

Answer 8

availability

Question 9

As there is more liquidity, there is typically _____ return.

Answer 9

less

Question 10

A C.D. is a certificate of _____ typically at a bank.

Answer 10

deposit

Question 11

Money market mutual funds are _____ risk money market accounts with check-writing privileges. These are great for emergency funds.

Answer 11

low

Question 12

Single stock investing carries and extremely _____ degree of risk.

Answer 12

high

Question 13

When you buy stock, you have buying a small piece of _____ in the company.

Answer 13

ownership

Question 14

Your return comes as the company increases in _____ or pays you, its owner, some of the profits (called _____)

Answer 14

value, dividends

Question 15

A bond is a _____ instrument by which the company owes _____ money.

Answer 15

debt, you

Question 16

Your return is the fluctuation in price and the _____ rate paid. _____ individuals do well with single bond purchases.

Answer 16

interest, Few

Question 17

Investors pool their _____ to invest.

Answer 17

money

Question 18

Profession portfolia managers manage the pool or _____

Answer 18

fund

Question 19

Your _____ comes as the _____ of the fund is increased.

Answer 19

return, value

Question 20

Mutual funds are good _____ term investments.

Answer 20

Long