Quiz about FA-6.1-6.3,6.7: Investing Review

Question 1

Who manages a passively manged fund?

Accepted Answer

A computer

Answer

A person

Question 2

Who manages an actively managed fund?

Accepted Answer

A person

Answer

A computer

Question 3

Fees are generally ____ in a passively managed fund.

Accepted Answer

lower

Answer

higher

Question 4

Fees are generally ____ in an actively managed fund.

Accepted Answer

higher

Answer

lower

Question 5

The goal of passive investing is to ____.

Accepted Answer

match the market

Answer

outperform the market

Question 6

The goal of active investing is to ____.

Accepted Answer

outperform the market

Answer

match the market

Question 7

The type of fund for passive investing is ____.

Accepted Answer

Index Fund

Answer

Actively Managed Mutual Fund

Question 8

The type of fund for active investing is ____.

Accepted Answer

Actively Managed Mutual Fund

Answer

Index Fund

Question 9

Which is the best description of an index fund?

Accepted Answer

A mutual fund that tracks the performance of a specific market benchmark

Answer

A retirement fund for employees over age 50

Answer

An index made up exclusively of government bonds

Answer

A safe investment product that guarantees a high rate of return

Question 10

How is an exchange traded fund (ETF) different from a mutual fund?

Accepted Answer

An ETF can be traded throughout the day and bought from other investors, like a stock

Answer

An ETF can only be bought at the end of the day from the fund provider

Answer

An ETF is usually actively traded and has higher expense ratios

Answer

An ETF is a pooled investment that uses funds from many different investors

Question 11

What is a robo-advisor?

Accepted Answer

An investment management service that uses a computer program to manage assets

Answer

A security algorithm used by some fund managers to protect your investments

Answer

A financial manager who provides specialized advice about technology funds

Answer

A popular type of exchange traded fund (ETF) with a low minimum investment

Question 12

Which list below contains four financial sources you can use to fund your retirement?

Accepted Answer

Social Security, Pension, IRA, 401(k)

Answer

Social Security, Medicare, mutual fund, 401(k)

Answer

Pension, traditional, Roth, investment manager

Answer

Traditional IRA, Roth IRA, 501(c)(3), income taxes

Question 13

What is the key difference between a 401(k) and an IRA?

Accepted Answer

401(k)s are offered through an employer, but individuals set up IRAs themselves

Answer

401(k)s incur taxes, but IRAs do not

Answer

401(k)s are only available to high income earners, but IRAs can be used by anyone

Answer

401(k)s are available to teens, but IRAs are not

Question 14

Which strategy is most effective to ensure you have enough money for retirement?

Accepted Answer

Invest every month, starting at a young age, in an investment retirement account

Answer

Put large amounts of money, monthly, into a savings account with a low interest rate

Answer

Retire as early as possible so you can maximize your Social Security benefits

Answer

Invest every month in well performing stocks, starting 10-15 years before your retirement date

Question 15

With which fund can you trade just like a stock?

Accepted Answer

ETF

Answer

Mutual Fund

Question 16

This fund usually aims to track a specific index and provide its average return.

Accepted Answer

ETF

Answer

Mutual Fund

Question 17

Investors buy or sell their shares directly from other investors, like an individual stock.

Accepted Answer

ETF

Answer

Mutual Fund

Question 18

This fund is traded at the end of the day.

Accepted Answer

Mutual Fund

Answer

ETF

Question 19

Of the two funds, this type has more total assets under management.

Accepted Answer

Mutual Fund

Answer

ETF

Question 20

A Target Date Fund is based off the year you start working.

Accepted Answer

False

Answer

True

Question 21

As x gets large, y $$\rightarrow$$ ___.

Accepted Answer

0

Answer

$$\infty$$

Answer

-3

Answer

3

Answer

$$-\infty$$

Question 22

As x gets small, y $$\rightarrow$$ ___.

Accepted Answer

$$\infty$$

Answer

0

Answer

-3

Answer

3

Answer

$$-\infty$$

Question 23

asymptote: y = ___

Accepted Answer

3

Answer

0

Answer

$$\infty$$

Answer

-3

Answer

$$-\infty$$

Question 24

As x gets small, y $$\rightarrow$$ ___.

Accepted Answer

$$-\infty$$

Answer

0

Answer

$$\infty$$

Answer

-3

Answer

3

Question 25

asymptote: y = ___

Accepted Answer

0

Answer

$$\infty$$

Answer

-3

Answer

3

Answer

$$-\infty$$

Question 26

asymptote: y = ___

Accepted Answer

0

Answer

$$\infty$$

Answer

-3

Answer

3

Answer

$$-\infty$$

Question 27

As x gets large, y $$\rightarrow$$ ___.

Accepted Answer

0

Answer

$$\infty$$

Answer

-3

Answer

3

Answer

$$-\infty$$

Question 28

As x gets large, y $$\rightarrow$$ ___

Accepted Answer

3

Answer

0

Answer

$$\infty$$

Answer

-3

Answer

$$-\infty$$

Question 29

As x gets small, y $$\rightarrow$$ ___

Accepted Answer

$$-\infty$$

Answer

0

Answer

$$\infty$$

Answer

-3

Answer

3

Question 30

A 401(k) plan is a ___.

Accepted Answer

benefit that helps workers invest for retirement

Answer

special type of business plan

Answer

bank account specifically for entrepreneurs

Answer

benefit for workers making $401,000 or less

Question 31

What is one example of a service offered by a brokerage?

Accepted Answer

Allowing customers to buy/sell stocks

Answer

Offering certificate of deposit accounts

Answer

Offering high yield savings accounts

Answer

Allowing customers to sell goods online

Question 32

How much of your income do experts recommend investing in a 401(k) account?

Accepted Answer

10%

Answer

5%

Answer

7%

Answer

12%

Question 33

One difference between a Roth IRA and a traditional IRA is ___.

Accepted Answer

Roth: pay the taxes up front

Traditonal: pay the taxes when you withdraw

Answer

Roth: pay the taxes when you withdraw

Traditional: pay the taxes up front

Question 34

One difference between a Roth IRA and a traditional IRA is ___.

Accepted Answer

Roth: has a lower allowable limit you can put in each year.

Answer

Traditional: has a lower allowable limit you can put in each year.

Create a free account and access millions of resources

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Mathematics