Investment

With high risk, there is always the change of ...

• higher potential returns

• loss of investment

• both of the above

• none of above

You should invest all your money in a single type of mutual fund to get maximum return in your portfolio.

• true

• false

If you buy a company's bond:

• you own a part of the company

• you have lent money to the company

• you are liable for the company's debts

• you can vote on shareholder resolutions

In general, investments that are riskier tend to provide higher returns over time than investments with less risk

• true

• false

In general, if interest rates go down, then bond prices...

• go down

• go up

• are not affected

If a company files for bankruptcy, which of the following securities is most at risk of becoming virtually worthless

• preferred stock

• common stock

• bond

Which of the following has the highest level of risk?

• savings accounts

• state treasury savings bond

• corporate stocks

• credit union savings accounts

Saving "for a rainy day" means saving

• for a new roof for one's home

• for retirement

• for a college education

• to meet unexpected expenses

Stockholders are

• part owners of a corporation

• creditors of a corporation

• those who deposit money in commercial banks

• all of the above

Which is the most liquid form of savings?

• a savings account

• an IRA

• a money market account

• a certificate of deposit