Personal Finance Lesson 2 Investment Options

Question 1

Keep it ______ ________!

Answer 1

Simple stupid

Question 2

Never invest purely for ___ _______

Answer 2

Tax savings

Question 3

Never invest using ___________ money

Answer 3

Borrowed

Question 4

Define diversification

Answer 4

To spread around

Question 5

Diversification _____ risk

Answer 5

Lowers

Question 6

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

Answer 6

Risk

Return

Question 7

When discussing investments liquidity is…..

Answer 7

Availability

Question 8

As there is more liquidity, there is typically ______ return

Answer 8

Less

Question 9

A CD is what

Answer 9

Certificate of deposit typically at a bank

Question 10

Bull market

Answer 10

When the market starts to go up

Question 11

Bear market

Answer 11

When the market starts to go down

Question 12

Money market mutual funds are _____ risk. Money market accounts with _____ writing privileges

Answer 12

Low

Check

Question 13

Money markets are great for what

Answer 13

Emergency funds

Question 14

Single stock investing carries an extremely ______ degree of risk

Answer 14

High

Question 15

When you buy stock, you are buying a small piece of ________ in the company

Answer 15

Ownership

Question 16

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

Answer 16

Value

Dividends

Question 17

A bond is a _______. Instrument by which the company ______ you money

Answer 17

Debt

You

Question 18

Your return is the fluctuation in price and the ________ rate paid. Few individuals do well with _________ _____ purchases.

Answer 18

Interest

Single bond

Question 19

Investors pool their _____ to invest

Answer 19

Money

Question 20

Portfolio managers manage the pool or ______

Answer 20

Fund

Question 21

Your _______ comes as the _____ of the fund is increased

Answer 21

Return

Value

Question 22

Mutual funds are good _____ term investments

Answer 22

Long

Question 23

Least ______ consumer investment

Answer 23

Liquid

Question 24

You should have lots of _____ before using real estate as an ________

Answer 24

Cash

Investments

Question 25

Don’t borrow cash for .......

Answer 25

Real estate

Question 26

Annuities are ______ accounts with an ________ company

Answer 26

Savings | Insurance

Question 27

_________ annuities are at a low interest rate of around ______ % aren’t really fixed and are a _____ investment

Answer 27

Fixed 5% Bad

Question 28

_________ annuities are mutual funds sheltered by the annuity _______, thereby allowing the mutual fund to grow tax deferred

Answer 28

Variable | Covering

Question 29

What are four horrible investments

Answer 29

Gold Commodities and futures Day trading Via tidal a

Question 30

How much are the combined assets of the investment company institutes 8,015 mutual funds as of oct 2007

Answer 30

$12,356 trillion

Question 31

Only ____% of teens say they know how to invest money to make it grow

Answer 31

22

Question 32

____% of teens report that their main reason for saving is to have enough money for long term future plans like college or a car

Answer 32

51

Question 33

____% of teens have stocks and investments in an account that is held in their name

Answer 33

12

Question 34

Mutual funds that are properly ______ will have investment dollars spread ______ amount four different classes of financial assests . Name the four classes

Answer 34

``` Diversified Equally 25% international 25% aggressive growth (small cap) 25% growth ( mid cap) 25% growth and income (large cap) ```