Investing Unit Review

Question 1

Bond Value decreases when interest..

Accepted Answer

Increases

Question 2

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

Accepted Answer

Preferred stock

Question 3

_______% of Americans own stock.

Accepted Answer

50

Question 4

In high risk investments, price rises lead to..

Accepted Answer

Big Gains

Question 5

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

Accepted Answer

True

Question 6

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

Accepted Answer

True

Question 7

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

Accepted Answer

True

Question 8

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

Accepted Answer

Strategic Investing

Question 9

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

Accepted Answer

Fifth Third Bank consolidating a smaller bank

Question 10

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

Accepted Answer

True

Question 11

Which of the following is an example of industry risk?

Accepted Answer

A nationwide diet fad for a candy company

Question 12

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

Accepted Answer

diversification, lower cost, convenience

Question 13

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

Accepted Answer

False

Question 14

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

Accepted Answer

Systematic Investing

Question 15

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

Accepted Answer

True

Question 16

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

Accepted Answer

True

Question 17

Real-estate investments are often large and liquid.

Accepted Answer

False

Question 18

A diversified portfolio includes assets such as..

Accepted Answer

All of the above

Question 19

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

Accepted Answer

False

Question 20

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

Accepted Answer

False

Question 21

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

Accepted Answer

True

Question 22

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

Accepted Answer

True

Question 23

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

Accepted Answer

True

Question 24

Which of the following are factors to weigh when investing?

Accepted Answer

All of the above

Question 25

Real-estate investments are USUALLY protected from ____________?

Accepted Answer

Inflation

Question 26

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 27

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

Accepted Answer

Diversification

Question 28

In high risk investments, price falls lead to..

Accepted Answer

Big Losses

Question 29

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

Accepted Answer

Speculative investing

Question 30

Bond Value increases when interest..

Accepted Answer

Decreases

Question 31

Inflation reduces your purchasing power over time.

Accepted Answer

True

Question 32

Bonds have variable rates of interest on return?

Accepted Answer

False

Question 33

Political risk can be caused by..

Accepted Answer

Environmental regulations

Question 34

Annuities are used to supplement ________________ funds.

Accepted Answer

Retirement

Investing Unit Review

Questions 34

Investing Unit Review

Questions 34