Personal Finance Study Set 15

Business

Quiz 13 :

Investing Fundamentals

Quiz 13 :

Investing Fundamentals

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Common stock that an investor expects will increase in value is known as a growth stock.
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True False
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True

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The U.S.government is the world's largest provider of investment information.
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True False
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True

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Generally,options are conservative,long-term investments.
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True False
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False

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Asset allocation is the process of spreading your assets among several different types of investments to lessen risk.
True False
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The potential return on any investment should be directly related to the risk that the investor assumes.
True False
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A ceiling on a credit card is determined by the borrower and is the dollar amount that they want to borrow using the cash advance provision on their credit card.
True False
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There is no relationship between risk and safety.
True False
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The most important priority an investor in preferred stock enjoys is receiving cash dividends before common stockholders are paid any cash dividends.
True False
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The first step to creating an investment plan is to establish investment goals.
True False
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With most investments,more information is available than you can read and comprehend.
True False
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Potential investors should not wait until their financial affairs are in good shape before starting an investment program.
True False
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During periods of high inflation,there is a risk that the financial return on an investment will not keep pace with the rate of inflation.
True False
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A speculative investment is a high-risk investment that is made in the hope of earning a relatively large profit over a long period of time.
True False
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Once you have developed an asset allocation plan for your investments,you never need to adjust it.
True False
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The amount of time that your investments have to work for you is an important factor when establishing your long-term investment program.
True False
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A line of credit is a short-term loan that is approved before the money is actually needed.
True False
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Younger investors tend to invest a large percentage of their nest egg in growth-oriented investments.
True False
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The rate of return on an investment has no effect on an investment program.
True False
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Liquidity is the ability to buy or sell an investment quickly without substantially affecting the investment's value.
True False
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An emergency fund is an amount of money that can be obtained quickly in case of immediate need.
True False
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