Dave Ramsey Chapter 8

Question 1

Securities that represent part ownership or equity in a corporation

Accepted Answer

stocks

Question 2

To ensure that some of your retirement saving will not be subject to income tax upon withdrawal

Accepted Answer

A Roth IRA

Question 3

Piece of ownership in a company, mutual fund or other investment

Accepted Answer

share

Question 4

You can start investing with a small amount of money.

Accepted Answer

True

Question 5

Good investment portfolios are extremely complex.

Accepted Answer

False

Question 6

Federal agency that collects taxes & interprets/enforces the Internal Revenue Code

Accepted Answer

Internal Revenue Service

Question 7

The last time the United States issued war bonds was during the Vietnam War.

Accepted Answer

False

Question 8

Formed in 1792, the NYSE is the smallest organized stock exchange in the United States.

Accepted Answer

False

Question 9

Switch your investment strategy often, based on market conditions

Accepted Answer

False

Question 10

Money that is invested, either tax deferredor tax free, within a retirement plan

Accepted Answer

tax-favored dollars

Question 11

Which of the following is a good investment option?

Accepted Answer

Mutual Funds

Question 12

Quality of an asset that permits it to be converted quickly into cash without loss of value

Accepted Answer

Liquidity

Question 13

A retirement plan found in nonprofit organizations such as churches, hospitals and schools.

Accepted Answer

403(b)

Question 14

Mutual fund port. that is properly diversified has all $ located in just 1 class of assets

Accepted Answer

False

Question 15

Savings accounts and money-market accounts are most appropriate for:

Accepted Answer

Emergency funds and short-term goals

Question 16

Single stocks and mutual funds carry the same amount of risk.

Accepted Answer

False

Question 17

A list of your investments

Accepted Answer

portfolio

Question 18

Young investor willing to take moderate risk for above-average growth would be interested in:

Accepted Answer

Mutual funds

Question 19

Savings plan operated by a state/educ institution to help families set aside funds for college

Accepted Answer

529 plan

Question 20

Saving and investing have nothing to do with the amount of money you make.

Accepted Answer

True

Question 21

A reason that people need to save and invest is to:

Accepted Answer

Enable their money to make money

Question 22

Which statement is true about liquidity?

Accepted Answer

The more liquid an investment, the less return

Question 23

Savings acct sold by an ins co, provides pymts to the holder at intervals, after retirement

Accepted Answer

Annuity

Question 24

The government agency responsible for regulating the stock market

Accepted Answer

Securities and Exchange Commission

Question 25

The benefit of diversification in your investments is:

Accepted Answer

Reduced risk

Question 26

Distribution of a companyʹs earnings, decided by the board of directors, to its shareholders

Accepted Answer

dividend

Question 27

If you get into financial trouble, borrowing against your retirement plan is a good option.

Accepted Answer

False

Question 28

You should start investing as soon as you have your college education funded.

Accepted Answer

True

Question 29

Money markets are great for your emergency fund due to their liquidity and stability.

Accepted Answer

True

Question 30

Relationship of substantial reward compared to the amount of risk taken

Accepted Answer

risk-return ratio

Dave Ramsey Chapter 8

Questions 30

Dave Ramsey Chapter 8

Questions 30