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Consumer Economics MSU > ECONOMICS FINAL > Flashcards

ECONOMICS FINAL Flashcards

1
Q

Which statement is true about liquidity?

A

the more liquid an investment, the less return

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2
Q

True or False: Commodities and futures are extremely speculative and carry a high risk.

A

True

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3
Q

What is the KISS rule of investing?

A

Keep it Simple, Stupid

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4
Q

Which of the following is not necessarily a wise, long-term investment? Gold, Viaticals, futures

A

all of these

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5
Q

Which one is not a type of annuity?
fixed, stable, none of these, variable

A

stable

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6
Q

True or False: A certificate of deposit is the best place to keep an emergency fund.

A

False

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7
Q

Long-term investments properly diversified include the following mutual funds:

A

Growth, growth and income, international, aggressive growth

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8
Q

True or False: A single stock is the best place to keep your emergency fund.

A

False

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9
Q

The ____ IRA grows tax-free

A

Roth

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10
Q

Never save for college using:

A

lottery tickets, savings bonds, pre-paid tuition

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11
Q

T or F; Pre-tax contributions are ones the government lets you invest money in before taxes have been taken out of your income.

A

True

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12
Q

T or F: When you leave a company, don’t move your money from that retirement account.

A

False

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13
Q

T or F: Savings bonds are a good way to save for college

A

False

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14
Q

What should you do with your retirement accounts when you leave a company?

A

direct transfer

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15
Q

Baby Step 5 is:

A

college funding

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16
Q

Which is not a retirement plan? 529, 401(k), 457, 403(b)

A

529

17
Q

If your company provides a 100% match up to 6%, how much should you personally contribute to your 401(k) if you earn $35,000 (not including the money the company contributed)?

A

$2,100

18
Q

Which is not a benefit of the Roth IRA?

A

allows unlimited contributions

19
Q

T or F: Baby Step 7 is to pay off your house

A

False

20
Q

T or F: Real estate agents are usually worth the price

A

True

21
Q

Which is not a type of mortgage? Veterans Administration, Lease to Own, Reverse, Conventional

A

Lease to Own

22
Q

How much do you need for a down payment in order to avoid paying PMI?

A

20%

23
Q

T or F: Your rent or mortgage payment should be at least 25% or more of your take-home pay.

A

True

24
Q

T or F: Friends or relatives always make the best real estate agents.

A

False

25
Q

Which is not an investment benefit of homeownership? grows virtually tax free, lower tax bracket, forced savings plan, inflation hedge

A

lower tax bracket

Consumer Economics MSU (7 decks)

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