Part1- Investing- Personal Finance

Front

If the price of a stock has increased the last 10 years, will it definitely go up this current year?

Back

No

Front

When you are looking at how to diversify your investment portfolio, a having a low-risk conservative strategy will usually make more money than balancing your investments between high risk, medium risk, and low risk investments.

Back

No

Front

According to this graph, 30 year-olds should be investing $700 a month. Will most people follow this advice? What would be the best reason why or why not?

Back

No, because they may not be able to afford $700 a month.

Front

Why do you earn less money using simple interest than you would using compound interest?

Back

With compound interest, you earn interest on top of the interest that you already earned.

Front

Which of these has the most risk? Savings Account, Mutual Funds, Stocks

Back

Stocks

Front

Bob is looking for a place to invest money he will need in 3-4 months. Is it a good idea to tell him that stocks are the best place to invest because they're great short term investments?

Back

No

Front

Saving is putting cash aside so it can be used very quickly if needed.

Back

Yes

Front

Are stocks a share of ownership in a company and bonds a loan to a company or government that pays interest?

Back

Yes

Front

Kyle says pensions and 401(k)s offer you “free money.” What does he mean by this?

Back

Companies will match you or give you extra money for investing in the company retirement plan.

Front

All of these investors invest $5,000 per year. Which investor will retire with the most money? Options: Chris (blue), Susan (grey), Bill (green)

Back

Chris (blue)