1. (TCO 5) Which of the following statements is false?

No one is going to make you save the money; you need to start a program. To be useful, investment objectives must be very specific. Investment goals can be different for each individual. Because investment objectives deal with the future, it is useful to plan more than 5 years in the future. A long-term investment objective involves a time period of 2 years or less.

Question 2. 2. (TCO 5) Eric Peltz earns $70,000 a year. His monthly expenses total $3,600. What is the minimum amount of money that Mr. Peltz should set aside in an emergency fund?

$1,800 $3,600 $10,800 $21,600 $35,000

Question 3. 3. (TCO 5) You currently hold a $1,000 corporate bond; however, if interest rates in the overall economy increase, which of the following is most likely to be the market value of this bond?

$900 $1,100 $1,000 The value of the bond will not change. It is impossible to determine whether the bond's value will increase or decrease.

Question 4. 4. (TCO 5) Which of the following individuals should have the highest tolerance for risk?

Joan Cummings, who is a single mother with two small children Darren Carter, who works for American Airlines and is worried that he is going to be laid off soon Barry Parks, who is an investment banker and earns over $200,000 per year Michael Clark, who is 74 years old and been retired for 6 years Fred Funderbunk, who delivers pizzas and makes about $15,000 per year

Question 5. 5. (TCO 5) Mary Ann recently received a $20,000 gift from her uncle and is considering investing in stocks, because she knows that historically they have earned an approximately 10