Ch. 2 - Investments

Question 1

What does diversification mean?

Answer 1

To spread around

Question 2

Never invest using _________ money.

Answer 2

Borrowed

Question 3

What percentage of the ten-year periods

Answer 3

100%

Question 4

Variable and fixed are types of

Answer 4

Annuities

Question 5

When investing, you should always check the _________ track record.

Answer 5

5-10 years

Question 6

In _______, investors pool their money.

Answer 6

Mutual Funds

Question 7

The ___________ says that as the risk goes up, so does the return.

Answer 7

Risk Return Ratio

Question 8

Oil and gold are examples

Answer 8

Commodities

Question 9

The availability of your money is called __________

Answer 9

Liquidity

Question 10

_________ is a debt instrument where a company owes you money

Answer 10

Bond

Question 11

__________ are savings accounts with insurance company

Answer 11

Annuities

Question 12

Stock from overseas companies are called ________

Answer 12

International

Question 13

_________ is for anything less than five years.

Answer 13

Savings

Question 14

True or False: Never invest only for tax saving purposes

Answer 14

True

Question 15

Least liquid of all investments.

Answer 15

Real Estate

Question 16

Aggressive growth funds.

Answer 16

Small-Cap

Question 17

Growth and income funds.

Answer 17

Large-Cap

Question 18

List of your investments.

Answer 18

Portfolio

Question 19

Degree of uncertainty of the return on an

Answer 19

Risk

Question 20

Piece of ownership in company stock.

Answer 20

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