Exam 10: Fundamentals of Investing

Before beginning an investment program, your personal financial affairs should be in good shape. What 4 factors should you consider before making your first investment?

Bad products or poor financial management may result in investors experiencing ____________ risk.

An example of ____________ risk occurs when an investment does not keep up with prices that are increasing in the overall economy.

The written pledge of a government or a municipality to repay a specified sum of money along with interest is called a _________

Diversification of assets among several types of investments can decrease risk.

Normally, corporate bondholders receive interest

A type of investment that combines and invests the funds of many investors and manages it with a professional manager is called a(n)

Which of the following investments would rank the highest with regard to safety?

Which of the following is/are a desktop information service?

Which of the following investments has the highest risk?

Which of the following investments would provide the largest amount of income and most predictable source of income?

The nationwide average increase is just over 7 percent for real estate investments.

Bondholders generally receive interest payments every five months.

For an investor who wants to speculate, which of the following investments would be appropriate?