| A | B |
|---|
| Long-term investments, properly diversified, include the following mutual funds | Small Cap, Mid Cap, Large Cap and International |
| Which of the following is a good investment option | mutual funds |
| The MORE liquid an investment | the less return |
| reason that people need to save and invest | Enable their money to make money |
| the payout that people who own stocks in a company receive | dividends |
| Savings accounts and money-market accounts are most appropriate for | Emergency funds and short-term goals |
| benefit of diversification in your investments | reduced risk |
| To ensure that some of your retirement savings will not be subject to income tax upon withdrawal, you would contribute to | A Roth IRA |
| A young investor willing to take moderate risk for above-average growth would be most interested in | mutual funds |
| In some cases, employers will match the employee contribution, but you should fund your plan whether your company matches or not. This statement refers to what type of investment | 401k |
| A retirement plan found in nonprofit organizations such as churches, hospitals, and schools | 403 (b) |
| Formed in 1792, the New York Stock Exchange (NYSE) is the | LARGEST organized stock exchange in the US |
| potential for loss | risk |
| non-wage compensations provided to employees in addition to their normal wages or salaries | employee benefit packages |
| A savings account sold by an insurance company, designed to provide payments to the holder at specified intervals, usually after retirement | annuity |
| The purpose of this type of bond is to finance military operations during war time | war bonds |
| mutual fund portfolio that is properly diversified will have all investment dollars located in | ALL 4 |
| single stocks are _____ risky than mutual funds | more |
| you can start investing if you have _______amount of money | small |
| Characteristic of a good investment portfolios | simple |
| You should start investing as soon as you | have your college education funded |
| If you leave a job and have money saved in your employer's retirement plan, always roll that money into an IRA using a direct rollover because it allows you to avoid | taxes and penalities |
| you never want to borrow against this | retirement plan |
| factor that DOES NOT affect your ability to save and invest | how much money you make |
| Quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money | Liquidity |
| Relationship of substantial reward compared to the amount of risk taken | Risk-return ratio |
| A list of your investments | Portfolio |
| Piece of ownership in a company, mutual fund or other investment | Share |
| Securities that represent part ownership or equity in a corporation | Stocks |
| Money that is invested, either tax deferred or tax free, within a retirement plan | Tax-favored dollars |
| The government agency responsible for regulating the stock market | Securities Exchange Commission |
| Federal agency responsible for collecting taxes and for the interpretation and enforcement of the Internal Revenue Code | Internal Revenue Service |
| Distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders | Dividend |
| A savings plan operated by a state or educational institution designed to help families set aside funds for future college costs | 529 Plan |
