Personal Finance Ch. 10

Tax-exempt income is taxed at a later date.

• True

• False

A speculative investment is a low-risk investment.

• True

• False

Financial Planners can invest one’s money into various investments.

• True

• False

Of the following investments, the one with the most predictable income is ____.

• gold

• commodities

• land

• U.S. govt. bonds

Microsoft, Inc. gave a written pledge/promise to Gordon stating that they will repay him for the specified amount of money he gave, along with interest. This best relates to which type of investment?

• Corporate Bond

• Preferred Stock

• Government Bond

• Investment Liquidity

Income earned from stocks and corporate bonds in a retirement account is ____________.

• net income

• short-term gains income

• tax exempt income

• tax deferred income

Nicholas owns stock in two different companies and also has invested in three different mutual funds. His investment portfolio is considered:

• high risk

• speculative

• diversified

• tax exempt

A high-risk investment such as gold is considered a speculative investment that has the potential for __________ returns than a government bond.

• higher

• lower

Danna has developed an expertise in accounting, tax preparation, and retirement planning. She has built up her business to help customers create an overall financial plan to achieve their retirement and investment goals as well as a plan for taxes. Danna can be described as a:

• stock broker

• financial planner

• investment advisor

• fund manager

Agnes can lend the U.S. government money, and in exchange, they promise to pay her interest until they pay her back. This is an example of:

• a. a corporate bond

• b. a government bond

• c. preferred stock

• d. common stock