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Chapter 2 - Dave Ramsey - Investment Options Flashcards | StudBud
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Chapter 2 - Dave Ramsey - Investment Options
Growth and Income Funds
Which is not true about investments?
Chapter 2 - Dave Ramsey - Investment Options
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Investment Options - Dave Ramsey
Flashcards
32 cards
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Questions
32
Answers
1
Which is not true about investments?
Never invest only for taxsavings purposes.
Never invest using borrowed money.
Diversification will help lower the risk.
Always invest only for tax savings purposes.
2
Growth and Income Funds
Large-Cap
Small-Cap
Mid-Cap
3
The _________ says that with investments, as the risk goes up, so should the return
Aggressive Ratio
Risk Return Ratio
Investment Ratio
Return Ratio
4
Which is a type of annuity?
Fixed
Variable
5
The most aggressive mutual funds tend to be from:
Companies that are older and well-established
Companies that are a little younger and growing
6
100% of the ten-year periods in the history of the stock market have made money.
False
True
7
A share is a piece of ownership in an annuity.
True
False
8
Your daughter has a wedding next year.
Investing
Saving
9
Which of the following is a risk to consider when investing?
You could lose all of your money
Your money is not liquid
Inflation
10
Your daughter’s prom is in six months.
Saving
Investing
11
Aggressive Growth Funds
Mid-Cap
Small-Cap
Large-Cap
12
In _________, investors pool their money.
Annuities
Mutual Funds
Bonds
C.D.'s
13
You want to buy a house within the next five years.
Saving
Investing
14
You want to open a Roth IRA.
Investing
Saving
15
A collection of money from different investors, and is managed by a fund manager is called:
Annuities
Mutual Funds
Bonds
Company Stock
16
With all investments, as the risk goes up, the return goes down.
True
False
17
Stocks from overseas companies are called _________ growth stock mutual funds.
International
Local
18
Oil and gold are examples of _________.
Stocks
commodities
Mutual Funds
annuities
19
The difference between saving and investing is the amount of interest you earn on your money.
False
True
20
What is the best option if you begin losing money in your mutual fund?
Call your broker and switch your funds.
Leave it alone and continue to invest money in the fund.
21
When investing, you should always check the _________ trackrecord.
3-5 year
5-10 year
22
You want to start a college fund for your newborn son.
Investing
Saving
23
_________ is for anything less than five years.
Saving
Investing
24
A ________ is a debt instrument where a company owes you money.
Bond
C.D.
25
Diversification means to spread around.
False
True
26
What is true about investing in single stocks?
There is a high degree of risk.
There is a low degree of risk.
27
What is the difference between single stocks and mutual funds?
Mutual Fund 90-200 companies low risk
A professional oversees and researches mutual funds.
Single Stocks 1 company and high risk
28
_________ are savings accounts with insurance companies.
Bonds
C.D.'s
Mutual Funds
Annuities
29
The availability of your money is called _________.
Liquidity
Mutual Funds
30
Growth Funds
Mid-Cap
Large-Cap
Small-Cap
31
You want to buy a car in two years.
Investing
Saving
32
Never invest using _________ money.
Borrowed
Inherited