FP/101_r6 - Week Eight Quiz|
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|1) Investing in the stock market is a good way to meet which of the following savings goals?||A.||A vacation next summer||B.||A new car in 3 years||C.||College in 15 years||D.||A down payment on a house in 4 years|||2) What should you do if you don't want to spend a lot of time managing your investments?||A.||Get out of the game. Successful investing requires time and attention. If you don’t have the time to devote to it, you shouldn’t do it. ||B.||Invest in last year’s best-performing mutual fund.||C.||Invest in an index fund or ETF that tracks the entire stock market. ||D.||Invest in bond funds and other stable-value funds.|||3) When choosing a financial advisor, you should look for one who is
||C.||ETFs can be bought or sold at any time during the day when the market is open. ||D.||ETFs provide greater diversification than mutual funds. |||13) Which of the following is a loan to a company or to the government on which you earn interest until you receive your money back in a specified number of years?||A.||A stock||B.||A bond||C.||A personal loan||D.||A target fund|||14) Which of the following is an investment that holds shares of many companies but trades like a stock?||A.||An equity mutual fund||B.||A stock mutual fund||C.||An exchange-traded fund ||D.||An index fund|||15) Which of the following best describes dollar-cost averaging?||A.||The process of investing an average of a dollar a day in a stock mutual fund||B.||Investing an increasing dollar amount each month of the year||C.||Timing the market so that you buy more when share prices drop||D.||Investing a set dollar amount at regular intervals throughout the