which combination produces the largest return

invest as long as possible/highest interest rate

how quickly and easily an asset can be converted to cash

ideally, the rate of return is _______than the rate of inflation

higher, to maintain purchase power

Which is true of Mutual funds?

they are diversified investments

stockho;der will always receive a profit when stock is sold

A debt issued to investors for a specified period of time

How liquid is a savings account?

more liquid than a certificate of deposit

Which best describes inflation?

the rise in the general level of prices?

A diversified poprtfolio is desirable because it

decreases risk by investing in a variety of investment tools

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ms. merritt's investing

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personal finance Maury high school

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Questions 20

Answers

1
Which investment has tax benefits?
tax rated bonds
speculative investments
tax-advantaged investments
index funds
2
which combination produces the largest return
large additional investment/ no additional investment
invest as long as possible/highest interest rate
high interest rate bc that is the only thing that matters
small investment/ highest interest rate possible
3
If you wanted to invest your tax return in the stock market, who would you contact?
The New York Stock Exchange
a broker at a brokerage firm
A real estate agent
You should make the transaction on your own
4
what is liquidity
how much someone owes in bills
the amount of savings available
amount of money needed for necessities
how quickly and easily an asset can be converted to cash
5
Mutual fund Prospectus is a legal document which explains all aspects of the fund
false
true
6
the most common relationship between risk and return can be stated as
higher risk= lower return
no relationship exists
lower risk = higher return
higher risk= higher return
7
ideally, the rate of return is _______than the rate of inflation
higher, to maintain purchase power
lower, to minimize taxes
lower, to minimize risk
higher , to minimize risk
8
A mutual fund that charges a commission for administrative costs is called a load fund
false
true
9
Which is true of Mutual funds?
they are superior to purchasing a single stock
they are a form of real estate investments
they are speculative investments
they are diversified investments
10
which is NOT true?
stockho;der will always receive a profit when stock is sold
stockholders may pay a different price for a stock
A stockholder owns a part of a company
a stockholder may or may not receive a dividend
11
the term for a market doing well (stock prices high)
sheep market
rooster market
bear market
bull market
12
term for a market which is doing poorly and doesn't have investor confidence
bear market
rooster market
sheet market
bull market
13
A bond is
A debt issued to investors for a specified period of time
only offered by depository institutions
a share of ownership in a company
potentially going to have significant fluctuations
14
Four major retirement accounts are 401B, 403K, traditional IRA and Roth IRA
true
false
15
How liquid is a savings account?
more liquid than a checking account
more liquid than a certificate of deposit
less liquid than mutual funds
more liquid than cash
16
Which best describes inflation?
the projected value of an investment
the rise in the general level of prices?
the uncertainty of a return on investment?
the number of times something happens to money?
17
A Stock is a share of ownership in a company
true
false
18
who has the ability to give someone advice and enable him to purchase the stock
teller
investor
broker
teacher
19
A diversified poprtfolio is desirable because it
decreases risk by investing in a variety of investment tools
increases the risk/return ratio
limits investors choices to one or two investments
shows investor is a good predictor of the return
20
The two types of brokerage firms are discover and full service
true
false

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