Assess Yourself
Are you ready to take this lesson's quiz? The questions below will help you find out. Make sure you understand why each correct answer is correct—if you don't, review that part of the lesson.
1. What type of investment uses the futures market and is based on goods to be delivered on a future date?
- commodities
- stocks
- bonds
- real estate
The futures market is where suppliers and purchasers of commodities negotiate for payment of goods to be delivered on a future date
The futures market is where suppliers and purchasers of commodities negotiate for payment of goods to be delivered on a future date
The futures market is where suppliers and purchasers of commodities negotiate for payment of goods to be delivered on a future date
The futures market is where suppliers and purchasers of commodities negotiate for payment of goods to be delivered on a future date
2. What type of retirement investment is offered by non-profit businesses to their employees?
- IRA
- 403b
- 401k
- Roth IRA
The Roth IRA and IRA are retirement investment accounts you would open at a bank or investment firm.
The Roth IRA and IRA are retirement investment accounts you would open at a bank or investment firm.
The Roth IRA and IRA are retirement investment accounts you would open at a bank or investment firm.
The Roth IRA and IRA are retirement investment accounts you would open at a bank or investment firm.
3. What type of retirement investment can you start at a bank or investment firm and is taxed now when you contribute to the investment?
- IRA
- 403b
- 401k
- Roth IRA
An IRA is best if you think your tax bracket will be lower when you retire, as the taxes are deducted when you retire.
An IRA is best if you think your tax bracket will be lower when you retire, as the taxes are deducted when you retire.
An IRA is best if you think your tax bracket will be lower when you retire, as the taxes are deducted when you retire.
An IRA is best if you think your tax bracket will be lower when you retire, as the taxes are deducted when you retire.
4. What is an advantage of investing in a commodity?
- returns paid in product
- high risk
- diversification
- access to free gas
Commodities are raw materials or agricultural products used to create products you buy.
Commodities are raw materials or agricultural products used to create products you buy.
Commodities are raw materials or agricultural products used to create products you buy.
Commodities are raw materials or agricultural products used to create products you buy.
5. Which describes the best reason to start investing in your twenties?
- Your money will be safe for many years.
- The effect of compound interest increases your money.
- You have access to more money in your twenties.
- You finished school and learned the importance of investing.
The earlier you start investing, the longer your account will have to grow.
The earlier you start investing, the longer your account will have to grow.
The earlier you start investing, the longer your account will have to grow.
The earlier you start investing, the longer your account will have to grow.
6. What is a disadvantage of investing in a company 401k plan?
- The funds are never taxed.
- When you leave, the company keeps all your money.
- Your employer can access your funds thru automatic paycheck withdrawal.
- There is a vesting period to wait for employer match.
The vesting period is a certain amount of time you have to work at the company before you can collect the employer match.
The vesting period is a certain amount of time you have to work at the company before you can collect the employer match.
The vesting period is a certain amount of time you have to work at the company before you can collect the employer match.
The vesting period is a certain amount of time you have to work at the company before you can collect the employer match.
Summary
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