Questions 13-20

QUESTION 13 Rank these investments from least risky to most risky. Stock market bond, savings account Savings account, stock market bond Savings account, bond, stock market Bond, stock market. savings account QUESTION 14 "Opportunity Cost": is what you forego when you choose one thing over another True False QUESTION 15 Good money managers OWE the IRS a small amount ($999 or less) every April 15th. True False QUESTION 16 Occurs if you put less than 20% down on a house PMI CPA IPO None of the above QUESTION 17 Operating expenses is a fee that a mutual fund will charge you for keeping your money in the fund True False QUESTION 18 A great reason to invest for the long-term is that past data has shown that U.S. stock holders have never lost money in stocks on investments held for at least 20 years True False QUESTION 19 A large electronics plant in Thailand burned to the ground. The plant produced memory chips for computer manufacturers. What is the likely economic effect of the loss of this plant? the price of the memory chips will likely fall the price of the memory chips will likely rise the supply of computers will likely rise there will be no effect QUESTION 20 Index funds have gained substantially in popularity for all of the following reasons EXCEPT They are cheaper to run They are tax efficient Their performance has been at least as good as most actively managed funds They are insured by the federal government QUESTION 13 Rank these investments from least risky to most risky. Stock market bond, savings account Savings account, stock market bond Savings account, bond, stock market Bond, stock market. savings account QUESTION 14 "Opportunity Cost": is what you forego when you choose one thing over another True False QUESTION 15 Good money managers OWE the IRS a small amount ($999 or less) every April 15th. True False QUESTION 16 Occurs if you put less than 20% down on a house PMI CPA IPO None of the above QUESTION 17 Operating expenses is a fee that a mutual fund will charge you for keeping your money in the fund True False QUESTION 18 A great reason to invest for the long-term is that past data has shown that U.S. stock holders have never lost money in stocks on investments held for at least 20 years True False QUESTION 19 A large electronics plant in Thailand burned to the ground. The plant produced memory chips for computer manufacturers. What is the likely economic effect of the loss of this plant? the price of the memory chips will likely fall the price of the memory chips will likely rise the supply of computers will likely rise there will be no effect QUESTION 20 Index funds have gained substantially in popularity for all of the following reasons EXCEPT They are cheaper to run They are tax efficient Their performance has been at least as good as most actively managed funds They are insured by the federal government