Which of the following is NOT an example of a bear market?

The Dow Jones Industrial Average sets record high

Which government agency regulates the stock market?

Security and Exchange Commision (SEC)

Which of the following statements is NOT true about mutual funds.

They are a high risk investment.

How do you determine your net worth?

Subtract our liabilities from your assets

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W!se Financial Literacy Test Review-Investing

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This quiz is for students preparing for the W!se Financial Literacy exam.

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Questions 12

Answers

1
Which of the following is the least liquid investment?
Stocks
Bonds
Savings account
Real Estate
2
Which of the following is NOT an example of a bear market?
Massive plunge in Dow after Trump gets elected
Stock prices drop 50%
The Dow Jones Industrial Average sets record high
Consumer confidence is at an all-time low
3
Which type of retirement account is set up by your employer who may match your contributions?
401(k)
Traditional IRA
Roth IRA
HSA
4
Which government agency regulates the stock market?
Internal Revenue Service (IRS)
Security and Exchange Commision (SEC)
Consumer Federal Protection Bureau
Federal Reserve Board (The Fed)
5
Which of the following is NOT true about bonds?
They are loans to corporations and governments.
They are usually not subject to state income taxes.
They pay a fixed amount of interest.
They appreciate in value.
6
Which type of retirement account is NOT tax deferred?
Traditional IRA
Roth IRA
HSA
401(k)
7
Which of the following statements is NOT true about mutual funds.
They are collections of stocks, bonds, and cash investments.
They are managed by a professional.
They often charge fees.
They are a high risk investment.
8
How do you determine your net worth?
Total your personal property inventory
Complete your tax return
Subtract our liabilities from your assets
Add your liabilties to your assets
9
How can you reduce your risk of loss in the stock market?
Start day trading
Only trade on even numbered days
Diversify your portfolio
Only invest in one company
10
Income taxes are what type of taxes?
Flat taxes
Regressive taxes
Excise taxes
Progressive or graduated taxes
11
Which type of stock has voting rights including the right to vote by proxy?
Common stock
Blue-chip stock
Preferred stock
Income stock
12
Which of the following are ways you can benefit from investing in the stock market?
Your investment may yield dividends.
All of the above
Your investment may appreciate in value (aka capital gain).
You help businesses grow and develop new products

W!se Financial Literacy Test Review-Investing Flashcards | StudBud