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Quiz

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1. Wise investing relies on:

Hiring a full-service broker
Research and risk-managed moves
Luck of the draw


2. Inflation is:

The general rise in the cost of goods and services over time
A temporary drop in the cost of goods and services
The upward movement of the stock market over time


3. Before investing, it is a good idea to:

Buy a house
Attend an investing seminar
Create a budget and set goals


4. If you don't have enough money to save for all of your goals, you should:

Give up
Only save for one goal at a time
Consider if any goals can be adjusted


5. Cash equivalents include:

Money market mutual funds
Common stocks
Government bonds


6. Stocks are an important part of an investment portfolio because they:

Provide a guaranteed return
Generally provide the greatest return
Have the lowest commission charge


7. Which of the following is a true statement about mutual funds?
:

They are the least risky of all investment vehicles
They are always free of professional management fees
They can be made up of stocks, bonds, and/or cash equivalents


8. One of the best risk management tools is:

Diversification
Selling frequently
Averaging


9. Which of the following is a true statement about obtaining financial information from the internet?:

It can be a good place to get information, but pay attention to the source
You should only get information from the websites of major companies
Information on the internet is never reliable


10. A discount broker can be a good option for:

People who only want to invest in cash equivalent
People who do not want to do their own research
People who do not need advice from a financial advisor

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