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Updated Ramsey Ch 12 Investing and Retirement Flashcards | StudBud
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Updated Ramsey Ch 12 Investing and Retirement
Updated Ramsey Ch 12 Investing and Retirement
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From Dave Ramsey's Personal Finance Digital Foundations High School Curriculum. Fourth Edition
Flashcards
27 cards
F
Practice quiz
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Host live
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Questions
27
Answers
1
Don't buy mutual funds unless you plan to leave them to grow for at least ...
3 years
6 Months
7 years
5 years
2
Dividends are...
Required payments to stockholders
Not part of an investor's return
A share of the company's earnings paid to stockholders
All of the company's earnings
3
Generosity is the cure for...
the common cold
bankruptcy
Income gaps in our society
selfishness
4
A strong investment portfolio has...
similar assets
diversified assets
artwork
one type of asset
5
The Roth IRA is different because...
you pay taxes later... not now
you pay taxes now... not later
6
A ROTH IRA is...
Opened by an employer and is tax-deferred.
Opened by an individual and is tax-deferred.
Opened by an employer and the income earned is tax-exempt.
Opened by an individual and the income earned is tax-exempt.
7
A growth stock mutual fund is a group of stocks in companies that are...
growing
not growing
stagnant
trending downward
8
When you retire...
taxes go up
you still pay taxes
your income goes up
you no longer need to pay taxes
9
The risk-return ratio says that typically
Risk has no affect on potential return
As risk goes down, the potential return goes up
As risk goes up, the potential return goes down
As risk goes up, the potential return goes up
10
The process of figuring out how much money you'll need in retirement and planning how to reach that amount is called...
A financial number
Investing
creating a will
Retirement planning
11
Select the riskiest investment option below.
Certificates of Deposit (CDs)
Mutual Funds
Single Stocks
Money Market Savings Account
12
When it comes to the Stock Market, everyone hopes for a Bear Market.
False
True
13
Define Liquidity
How much your friendly water dealer charges for tap water
How much water you drink to stay hydrated
How much money your are able to take at a time
How easily and quickly your assets(money), can be turned into cash.
14
Ramsey recommends investing in which of the following:
Growth and Income Stock mutual funds
Growth Stock Mutual Funds
Aggressive Growth Stock Mutual Funds
International Stock Mutual Funds
15
An employer can contribute to a 401k.
True
False
16
A share of stock is
A cup of chicken soup
complete ownership of a company
a share of ownership in a company
A spot on the Board of trustees
17
A 401K is...
PEOPLE THAT NEED TO RETIRE WITHIN A YEAR
A REALLY LONG LONG TIME
A GOOD CAUSE THAT YOU MIGHT WANT TO DONATE YOUR TIME TO
AN EMPLOYER SPONSORED RETIREMENT ACCOUNT
18
Even if you get into financial trouble, you should never borrow against your retirement accounts.
False
True
19
The benefit of diversification in your investments is to:
Reduce risk
Reduce tax liability
Increase risk
Increase return
20
A 403b plan is utilized by
educational and non-profit companies
small business owners
self-employed individuals
anyone who wants one
21
The 3 factors of long term growth are...
All of the above
time
money
Rate of growth
22
Usually, the more liquid an asset is (like cash in the bank), the less return you can expect
False
True
23
A fund that allows investors to pool their money together to invest.
Bond
Money Market
Mutual
Stock
24
CD (certificates of deposit) accounts are insured by the FDIC?
True
False
25
You need a will if you are 18 or over.
True
False
26
The purpose of the IRS is to?
Pass laws to determine what will be taxed
enforce tax laws and collect federal taxes
prepare tax returns for businesses and individuals
Cut federal taxes
27
Money Market Accounts are a(n)...
earn a low interest rate
good choice for your Emergency Fund
good investment option
mostly liquid
