Investing for the Future Quiz

Investments with high liquidity are ____

• best for short-term investing

• less risky

• an important part of diversified portfolio

• likely to have higher fees

What is the primary difference between investing in a single stock and investing in a mutual fund?

• Stocks are more susceptible to economic events and natural disaster risk.

• Choosing stocks you like gives you more flexibility

• Mutual fund risk is less because mutual funds are more diverse

• Stocks generally have higher administrative fees.

Which type of investment is best known for having low risk and low liquidity?

• stocks

• bonds

• mutual funds

• commodities

Which portfolio is most diversified?

• a variety of stocks

• 401(k) in mutual funds

• a range of stocks, bonds, and commodities

• both short and long term investments

Which option is considered a long-term investment?

• Nasdaq stock

• silver bullion

• penny stocks

• rental property