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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:

Selling frequently

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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