Choose wisely. There is only one correct answer to each question.
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1.
You can find out where you are spending money needlessly by _______.
Tracking your spending for a while. The value of tracking your spending is that you become aware of every expense you make.
2.
Diversification of your investments _______.
Can reduce risk in the market. There is no cure for market risk; diversification can reduce risk, however, though it is not guaranteed to.
3.
If you set a financial goal and it fails, what could be a reason why it failed?
Any of the above. A goal could fail for any of these reasons.
4.
The stated goal "I want to create an emergency fund" is sufficiently specific to start working toward.
False. It is not specific enough; there is no way to tell how much time or money should be put into it.
5.
You must always treat short-term goals conservatively.
False. Generally, goals with short time horizons should take less investment risk; however, you must also consider your risk tolerance -- your ability to take risk if you are to meet your goals.