Retirement and Investing Quiz

Question 1

Certificates of deposit and money market accounts are both examples of investments with _______ risk and _______ return.

Accepted Answer

Low; low

Question 2

When using a Roth plan, you invest your money after paying taxes, and the investment grows tax-free.

Accepted Answer

True

Question 3

______ is key when it comes to compound growth.

Accepted Answer

Time

Question 4

Social Security benefits are meant to ________ your income.

Accepted Answer

Replace 40% of

Question 5

When you invest in a mutual fund, you are contributing to a pool of money that will be . . .

Accepted Answer

Invested in a mix of stocks, bonds and money market accounts

Question 6

Diversification reduces your __________ by using a mix of investment types in your portfolio.

Accepted Answer

Risk

Question 7

Investing your money earns you more money because of . . .

Accepted Answer

Compound growth

Question 8

A security that represents part ownership of a company is called a(n) _____________.

Accepted Answer

Stock

Question 9

____________ is the process of figuring out how much money you'll need in retirement and creating a plan to get there.

Accepted Answer

Retirement planning

Question 10

Roth IRA, 401(k), 403(b), 457, and Simplified Employee Pension are all examples of ______________.

Accepted Answer

Retirement plans

Question 11

Mutual funds are less risky and can outperform the stock market because . . .

Accepted Answer

They invest in several companies at once.

Question 12

The three components of compound growth are money, time and _________________.

Accepted Answer

Rate of return

Question 13

Never invest your money in ______ because it/they are extremely risky.

Accepted Answer

Single stocks

Questions 13