2nd Practice Final Exam in Public Policy and Personal Finance

Front

According to IF YOU CAN: HOW MILLENNIALS CAN GET RICH SLOWLY, what is the most important word in the entire booklet?

Back

if

Front

What is described as the first hurdle people face when trying to save and invest for retirement on their own? Options: Not having a pension plan, Spending too much money, Lack of financial knowledge, Market history misunderstanding

Back

Spending too much money

Front

What is referred to as the 'biggest enemy' in managing long-term risks according to the text?

Back

The investor themselves

Front

According to IF YOU CAN, how do self-deluded monsters in the financial industry often appear?

Back

As friendly advisors

Front

What is the minimum percentage of your salary that you should save for retirement, as mentioned in IF YOU CAN?

Back

15%.

Front

What does Bernstein imply about the relationship between spending habits and wealth accumulation?

Back

Inverse correlation between spending and saving.

Front

From the investors' perspective, why is a stock considered riskier than a bond?

Back

Stocks are more dependent on business success.

Front

What is the primary reason sophisticated investors might prefer stocks over bonds, according to the text?

Back

Stocks have potentially unlimited upside.

Front

What does IF YOU CAN suggest about the ability to predict market declines?

Back

It is not possible and akin to a lucky guess.

Front

What type of assets are described as "riskless" in the text?

Back

Bonds