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Which of the following steps is NOT a factor to be considered before making your first investment? Work to balance your budget. Manage your credit
- Which of the following steps is NOT a factor to be considered before making your first investment?
- Work to balance your budget.
- Manage your credit card debt.
- Save at least $10,000 to invest.
- Start an emergency fund.
Week 4 Quiz 10 Multiple Choice Questions (1/2 point each) Page 1 and 2 1. Which of the following steps is NOT a factor to be considered before making your first investment? a. Work to balance your budget. b. Manage your credit card debt. c. Save at least $10,000 to invest. d. Start an emergency fund. 2. As people approach retirement, which of the following holds true for most? a. Their choices of investments do not change. b. They choose more conservative investments. c. They choose more risky investments. d. They move all their money into certificates of deposit. 3. Timothy has $100 automatically invested in stock each month. This way, he does not buy high and sell low. He is using a a. Buy and hold technique b. Direct investment plan c. Direct reinvestment plan d. Dollar cost averaging technique 4. What happens to the price of bonds when interest rates go up? a. It goes down. b. It goes up. c. Nothing. Bond prices are unaffected by fluctuations in interest rates. d. It stays the same. Bond prices are determined by the market dynamics of buying and selling. 5. Which of the following is a profitability ratio that uses the number of outstanding shares in the calculation? a. Capital gain b. Earnings per share c. Price per share d. Net income 6. Which of the following types of stock funds invests in the same companies included in the Standard & Poor's 500 stock index? a. Equity income funds b. Growth funds c. Index funds d. International funds 7. Julian's annual contributions to his retirement are not tax-deductible, but his earnings accumulate tax-free. He is investing in a a. 401(k) plan b. Regular IRA c. Roth IRA d. SEP plan Week 4 Quiz 10 Multiple Choice Questions (1/2 point each) Page 1 and 2 8. When thinking about retirement, which of the following is most accurate? a. You'll spend less when you retire. b. Saving just a little bit won't help. c. You can depend on Social Security and a company pension plan to pay your basic living expenses. d. The earlier you start saving, the better. 9. The best definition of estate planning is a. Savings b. Naming a beneficiary c. A definite plan for managing property during one's lifetime and at one's death d. Writing a will 10. Megan decided to start investing in stocks. Which of the following should she do first? a. Base her investing decisions on hot tips she hears at work. b. Buy stocks based solely on her stockbroker's recommendation c. Pick stocks at random d. Research the corporations she is interested in, as well as their industries
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