1. You should start to invest money only after you have your bills taken care 1 point of and you have set aside funds in savings for emergencies. * True Fasle 1 point 2. The risk / reward rule states that the higher the risk involved the lower the potential rewards. * True False 1 point 3. Three of the main reasons for investing are to make a profit, stay ahead of inflation and to provide income in retirement. * True False 1 point 4. The rule of 72 states that you need to have 72% of your working income set aside for your retirement. * True Fasle 13 points 5. If you buy a company's bond you have purchased ownership in that company. True False 6. When you buy a bond you will get interest on that bond each year. 1 point True False 7. Higher rated bonds, AAA... are less risky than DDD bonds. * 1 point True False 8. The term we use for not having to pay taxes on an investment is called * 1 point A tax deferred B tax exempt C tax advantaged O O D going to jail soon 9. When you sell something for more than you bought it for you have made 1 point a * A dividend B coupon rate C blue chip purchase D capital gain