2nd Hr Investment Unit Test Review

Worldwide, there are many different stock exchanges

Which type of account is more susceptible to inflation risk?

All investments carry some investment risk

A person will likely have the same investment philosophy with a 5 year investment vs. a 30 year investment

With some investments, you may have to wait a long time to access funds.

Which has the potential to earn higher returns?

Portfolio Diversification means

1 What is inflation?

Which of the following statements about Exchange Traded Funds (ETFs) is TRUE?

Real Estate investments are not as time consuming as other investments

Market price is

2 The relationship between risk and return can be stated as:

The 3 types of investor philosophies are Conservative, Moderate and

All bonds have a maturity date

Investments are a tool for building net worth

Investments are more liquid than savings tools.

What is a vesting period?

A dividend is

What kinds of cognitive biases and behaviors can prevent people from making smart investing decisions?

A Mutual Fund is suggested for investors who

An index fund

Assets purchased with the goal of providing additional income from the asset itself but with the risk of loss?

The profit or income generated by saving and investing is known as:

The goal of investing is to

What do brokerage firms do?

Percentage (%) of NI that financial experts recommend you commit to saving & investing as part of your spending plan?

When someone purchases stock in a company, typically they

A financial Plan would not be complete without both savings and investements.

The opportunity for large returns on real estate investments is

High risk bonds tend to have lower interest rates

If a company performs poorly or goes out of business, a stockholder could lost part of all of their principal investment

Unlike savings tools, investments are

Mutual Funds

An advantage of choosing a discount brokerage firm is lower fees

To open a brokerage account, you....

Savings and investments are both forms of unearned income and are therefore NOT subject to income tax