Ramsey Classroom Ch. 12 (Investing & Retirement) Test Review

Question 1

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

Accepted Answer

Compound growth

Question 2

_______ is the cure for ________.

Accepted Answer

Generosity; selfishness

Question 3

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

Accepted Answer

Risk

Question 4

When riding the highs and lows of the stock market, remember . . .

Accepted Answer

It will level out, so stick with it!

Question 5

What is The Fifth Foundation?

Accepted Answer

Build wealth and give.

Question 6

Be aware of any ______ you might receive, but don't bank on it as a key part of your retirement plan.

Accepted Answer

Inheritance

Question 7

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

Accepted Answer

Retirement plans

Question 8

When you invest, your goal is to earn a negative rate of return on investment.

Accepted Answer

False

Question 9

When you invest, your goal is to earn a negative rate of return on investment.

Accepted Answer

False

Question 10

______ is key when it comes to compound growth.

Accepted Answer

Time

Question 11

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

Accepted Answer

Stock

Question 12

When you're retired, you'll still have to pay taxes.

Accepted Answer

True

Question 13

You can build a legacy you'll be proud of by . . .

Accepted Answer

Giving your time and money to others

Question 14

Never _____ something you don't _____.

Accepted Answer

Invest in; understand

Question 15

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

Accepted Answer

Low; low

Question 16

Before you invest, you should make sure a mutual fund has done well for 5-10 years.

Accepted Answer

True

Question 17

Social Security benefits are meant to ________ your income.

Accepted Answer

Replace 40% of

Question 18

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

Accepted Answer

Rate of return

Question 19

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 20

Usually, the more liquid an asset is (like cash in the bank), the less return you can expect.

Accepted Answer

True

Question 21

Why might someone choose to diversify their investments?

Accepted Answer

To balance high-risk investments with more steady and predictable ones.

Question 22

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

Accepted Answer

True

Question 23

____________ 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 24

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

Accepted Answer

They invest in several companies at once.

Question 25

When donating money, you should always . . .

Accepted Answer

Identify a cause that matters to you and research the charity thoroughly.

Question 26

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

Accepted Answer

Single stocks

Question 27

What does "bull and bear" reference?

Accepted Answer

The stock market

Question 28

Live like no one else now, so later you can live and ____ like no one else.

Accepted Answer

Give

Question 29

It's okay to borrow money from your retirement account, but don't borrow money to invest in it.

Accepted Answer

False

Question 30

If you're over the age of ___, you need a will.

Accepted Answer

18

Ramsey Classroom Ch. 12 (Investing & Retirement) Test Review

Questions 30

Ramsey Classroom Ch. 12 (Investing & Retirement) Test Review

Questions 30