All Courses > Portfolios > 200
Portfolios 204: Primer to Individual Retirement Accounts

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
What is the name for the party that holds funds you contribute to your IRA?
Choose wisely. There is only one correct answer.
Custodian. When holding funds, the party is referred to as a custodian.
2.
Which of the following may fund a Roth IRA?
Choose wisely. There is only one correct answer.
A bond that does not pay periodic interest. This is called a zero coupon bond, and it is allowed as an IRA investment. The others are not.
3.
The party that holds funds you contribute to your IRA is called the collection agent.
Choose wisely. There is only one correct answer.
False. It is called the custodian.
4.
The traditional individual retirement account has all of the following characteristics except for ______.
Choose wisely. There is only one correct answer.
Contributions that are never tax-deductible. They can be if certain conditions are met. It is the Roth IRA whose contributions are never deducted from taxable income.
5.
In a _______ individual retirement account, the money you contribute to it has already been taxed.
Choose wisely. There is only one correct answer.
Roth. Your contributions come out of your net pay, meaning they have already been taxed.