MM Ch. 8 Review

Which of the following is a good investment option?

Always roll over funds from a previous employer into a direct rollover IRA to avoid taxes.

A savings account sold by an insurance company providing payments upon retirement.

A young investor willing to take moderate risk for above-average growth would purchase:

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

When buying and selling investments you should not:

Which statement is true about liquidity?

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

The benefit of diversification in your investments is:

Good investment portfolios are extremely complex.

Properly diversified mutual fund will have all investment dollars located in 1 classification.

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

Which of the following statements about the stock market is false.

The last time war bonds were sold was during the Vietnam War.

If you own stock in a company you can expect to receive a(n):

A reason people need to save and invest is to:

To ensure that your retirement savings will not be subject to income tax upon withdrawal

Money Markets are great for you emergency fund due to their liquidity and stability.

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

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

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

Sometimes, employers will match the employee contribution, this is a:

You can start investing with a small amount of money.

Employee benefits packages

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