Exam 20: Understanding Personal Finance and Investments

After taking this course, you have decided that a year after graduating you would like to have an emergency fund in place. By age 25, you would like to have enough money saved to buy a new car. Which stage of creating a financial plan does this represent?

Which of the following investments is MOST liquid?

If Richard wants to invest in large-cap stocks, he should seek companies that have an overall value of what amount?

Which of the following is NOT one of the three common ways to differentiate between shares in the stock market?

After graduation, you receive a job offer that includes an excellent salary, health benefits, paid vacation, and a company sponsored retirement saving plan. Your company will match 100% of your contributions, up to 6% of your salary. You decide to enroll in the retirement savings plan and contribute 15% of your salary. This is an example of which stage of creating a financial plan? ​

Which of the following would most likely be classified as a growth investment?

Which of the following magazines provides not only general economic news but also detailed financial information about individual companies?

Having struggled to save money for his retirement, Ahmed is wary of risky investments. He'd rather earn a low rate of return than risk losing money on the investment. Based on this information, which investment would be the most appropriate for Ahmed?

If you wanted to purchase stocks in a certain sector of the market, which of the following would likely provide the least volatility?

Larry is a few years away from retirement. Which of the following portfolios is appropriate for Larry?

Suppose that before you started college your parents gave you $2000 to cover expenses for your first year, like books, supplies, and food. You need this money, and your parents will not replace it if you spend it on items other than school necessities. You want to invest this money in a safe place. When considering where to invest this money, what is the factor that most affects your decision?

What is the general relationship between risk and return?

Most investment counsellors recommend that an individual establish an emergency fund equal to at least what amount?

Which of the following statements would be an example of a medium-term goal?

Haverting Inc. is a fast-growing biotech company. What is Haverting likely to do with any profits it generates?

Which of the following must publish annual reports that include a description of the company's performance, information about the business's products or services, and detailed financial statements, that readers can use to evaluate the company's performance?

For a corporate bond with a face value of $1000 and a stated interest rate of 6%, the owner would receive which of the following?

Which of the following is defined as the total return you receive on an investment over a specific period of time divided by the amount invested?

Tsui's New Year's resolution was to save money by the end of the year. What fault would financial planners find with Tsui's goal?

Marty is now retired and asks for your help choosing an investment that will provide a steady source of income. What do you recommend to Marty in this situation?