Investing Unit Review

Question 1

Real-estate investments are often large and liquid.

Accepted Answer

False

Question 2

In high risk investments, price falls lead to..

Accepted Answer

Big Losses

Question 3

Bond Value increases when interest..

Accepted Answer

Decreases

Question 4

The use of long term savings to earn a financial return is called inflation.

Accepted Answer

False

Question 5

Which of the following is an example of industry risk?

Accepted Answer

A nationwide diet fad for a candy company

Question 6

The type of investing that requires bold and high risk investments.

Accepted Answer

Speculative investing

Question 7

Making investments on a regular and planned basis (a certain amount each month) is known as..

Accepted Answer

Systematic Investing

Question 8

Your money will grow faster in a standard savings account than it will in the stock market.

Accepted Answer

False

Question 9

Which of the following is NOT a non-market risk?

Accepted Answer

Fifth Third Bank consolidating a smaller bank

Question 10

Why do people typically invest in mutual funds? (Choose BEST answer)

Accepted Answer

diversification, lower cost, convenience

Question 11

High-risk investments can lead to a loss in principal.

Accepted Answer

True

Question 12

U.S. Government bonds are considered VERY safe low-risk investments.

Accepted Answer

True

Question 13

Which of the following are factors to weigh when investing?

Accepted Answer

All of the above

Question 14

Bonds have variable rates of interest on return?

Accepted Answer

False

Question 15

In high risk investments, price rises lead to..

Accepted Answer

Big Gains

Question 16

An essential part of investing is to provide for future needs.

Accepted Answer

True

Question 17

Political risk can be caused by..

Accepted Answer

Environmental regulations

Question 18

_______% of Americans own stock.

Accepted Answer

50

Question 19

Annuities are used to supplement ________________ funds.

Accepted Answer

Retirement

Question 20

Real-estate investments are USUALLY protected from ____________?

Accepted Answer

Inflation

Question 21

Inflation reduces your purchasing power over time.

Accepted Answer

True

Question 22

Capital gains are only gains on paper until you sell them.

Accepted Answer

True

Question 23

A type of stock that pays a fixed dividend but has no voting rights is a..

Accepted Answer

Preferred stock

Question 24

A diversified portfolio includes assets such as..

Accepted Answer

All of the above

Question 25

Investing in well-established companies are typically low to medium-risk investments.

Accepted Answer

True

Question 26

Starting out with investing, it is recommended that you start small and conservative.

Accepted Answer

True

Question 27

After the 9/11 terrorist attack on the World Trade Center, roughly how long did it take for the DOW to recover?

Accepted Answer

2 months

Question 28

Stockholders are only liable for the amount that they invest in the company.

Accepted Answer

True

Question 29

Bond Value decreases when interest..

Accepted Answer

Increases

Question 30

The careful management of inv. alternatives to maximize growth of your portfolio over the next 5-10 years

Accepted Answer

Strategic Investing

Question 31

It is wise to have investment goals that are broad and immeasurable.

Accepted Answer

False

Question 32

When a corporation or the government sells a bond it is borrowing from an investor.

Accepted Answer

True

Question 33

What reduces risk by investing in vehicles that span different financial instruments, industries, and other categories?

Accepted Answer

Diversification

Question 34

When a non-market related event occurs, investors tend to sell to have cash on hand.

Accepted Answer

True

Investing Unit Review

Questions 34

Investing Unit Review

Questions 34