Which of the following statements is NOT true about mutual funds.

They are a high risk investment.

How do you determine your net worth?

Subtract our liabilities from your assets

Which of the following is NOT an example of a bear market?

The Dow Jones Industrial Average sets record high

Which government agency regulates the stock market?

Security and Exchange Commision (SEC)

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W!se Financial Literacy Test Review-Investing

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This quiz is for students preparing for the W!se Financial Literacy exam.

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Questions 12

Answers

1
How can you reduce your risk of loss in the stock market?
Start day trading
Only invest in one company
Diversify your portfolio
Only trade on even numbered days
2
Which of the following is NOT true about bonds?
They pay a fixed amount of interest.
They are usually not subject to state income taxes.
They appreciate in value.
They are loans to corporations and governments.
3
Which of the following statements is NOT true about mutual funds.
They often charge fees.
They are collections of stocks, bonds, and cash investments.
They are a high risk investment.
They are managed by a professional.
4
How do you determine your net worth?
Add your liabilties to your assets
Total your personal property inventory
Subtract our liabilities from your assets
Complete your tax return
5
Which of the following is the least liquid investment?
Real Estate
Savings account
Stocks
Bonds
6
Which type of stock has voting rights including the right to vote by proxy?
Income stock
Preferred stock
Blue-chip stock
Common stock
7
Which of the following is NOT an example of a bear market?
Stock prices drop 50%
Consumer confidence is at an all-time low
The Dow Jones Industrial Average sets record high
Massive plunge in Dow after Trump gets elected
8
Which government agency regulates the stock market?
Federal Reserve Board (The Fed)
Consumer Federal Protection Bureau
Internal Revenue Service (IRS)
Security and Exchange Commision (SEC)
9
Which type of retirement account is set up by your employer who may match your contributions?
Roth IRA
401(k)
Traditional IRA
HSA
10
Which type of retirement account is NOT tax deferred?
401(k)
Traditional IRA
Roth IRA
HSA
11
Income taxes are what type of taxes?
Flat taxes
Regressive taxes
Progressive or graduated taxes
Excise taxes
12
Which of the following are ways you can benefit from investing in the stock market?
Your investment may yield dividends.
All of the above
You help businesses grow and develop new products
Your investment may appreciate in value (aka capital gain).

W!se Financial Literacy Test Review-Investing Flashcards | StudBud