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Booklet Quiz
Chapter 2 Booklet
Question | Answer |
---|---|
Never invest purely for ______ ______ | tax savings |
Never invest using ____ money. | borrowed |
What means to spread around? | Diversification |
What does diversification lower? | risk |
How many companies made a profit in a 10 year period? | 100% |
How many companies made a profit in a 5 year period? | 97% |
With virtually all investments, what goes up as the potential return goes up? | risk |
When discussing investments, what is availability? | liquidity |
As there is more liquidity, is there less or more return? | less return |
What is a C.D.? | Certificate of Deposit |
what are great for emergency funds? | money market mutual funds |
what carries an extremely high degree of risk? | single stocks |
when you buy stock, you are buying a small piece of what in the company? | ownership |
your return comes as the company increases in what? | value |
what is it when you are paid some of the company profits? | dividine |
what is a debt instrument by which the company owes you money? | bond |
what are mutual funds? | good long term investments |
At what percent is the mutual funds international asset? | 25% |
At what percent is the mutual funds Aggressive Growth (Small cap) asset? | 25% |
At what percent is the mutual funds Growth (Mid Cap) asset? | 25% |
At what percent is the mutual funds Growth and Income (Large Cap) asset? | 25% |
you should have lots of what before using real estate as an investment | cash |
What are savings accounts with an insurance company? | Annuities |
what are at low interest rate of around 5%, aren't really fixed, and are a bad investment? | fixed annuities |
what are mutual funds sheltered by the annuity covering, thereby allowing the mutual fund to grow tax-deferred? | variable annuities |
Why are gold commodities and Futures Day trading Viaticals bad? | Because you can't control the outcome |