Business Econ--Dave Ramsey--Investing
Chapter 2 of Dave Ramsey curriculum on investments
To spread around and lower risk.
money market account
Best place to keep your emergency fund.
Lowers your risk with investing.
Keep it Simple Stupid is this principle
A savings account device with a certificate
Least liquid of all investments
A savings account within an insurance company
risk return ratio
When risk goes up, return goes up
Piece of ownership in company stock
How easily something converts to cash (availability of your money)
With MOST investments, as risk goes up, return goes:
This percent of the ten-year periods in history of the stock market where the market has made money
This investment form typically includes investments in 90-200 various companies
Profits that a company distributes to its shareholders
Never invest using this type of money:
Oil and gold are examples of this type of investment:
When investing, research at least this many years into the history of the investment and know the track record
Savings are used for _____-term investments
Stocks from overseas companies are called _______ mutual funds
A debt instrument where company owes you money
Investments where investors pool their money
What degree of risk is an investment in a single stock?
Good or bad investment--gold, commodities, and viaticals
Investment that povides payment on a life insurance policy before death
Young, growing companies generally are _____________ mutual funds
High or low risk? Aggressive growth fund
leave it alone and stop investing in it
If you begin losing money in your mutual fund, you should do this:
What cap? Aggressive growth funds
What cap? Growth funds
What cap? Growth and income funds
Which has the lower rate of return--mutual fund, CD, or bond?
Which has the higher rate of return--mutual fund, CD, or bond?
Low or high risk? Annuities
Low or high risk? Commodities
Generally, the more liquid an investment is, the:
save or invest? Prom is coming up in a few month
save or invest? Plan a retirement fund
save or invest? Big anniversary party for your parents next year
save or invest? You want to buy a car in two years
save or invest? Start a college fund for your baby
save or invest? You want to buy a house in five years
With standard mutual fund diversification, what percent is invested into each type of fund?
Before even thinking about investing, you should have already paid off all:
Buying the beneficiary position on a life insurance policy of someone who is dying; listed by FTC in top 10 scams
A debt instrument where the return comes on the interest rate paid on the loan
Portfolio managers who do lots of research manage this pool
You should never pay retail (asking) price and this requires a lot of cash
Represents a piece of ownership in a company
As interest rates rise, these prices fall
Certificate of Deposit
A six month or one year savings instrument that pays a little more interest than a regular savings account
If oil hits a certain level in 90 days, your money will increase tenfold
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