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1.
The charge for investing in an annuity or mutual fund is called the ________.
Choose wisely. There is only one correct answer.
Load. The load is the charge for buying or selling shares in a mutual fund or annuity.
2.
Companies that do not pay dividends might be good growth investments.
Choose wisely. There is only one correct answer.
True. Often, companies do not pay dividends in order to funnel more profits into growth.
3.
_______ are taxed at a relatively low rate if you hold your investments long enough.
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Capital gains. Long-term capital gains are taxed at a lower rate to encourage investment.
4.
When interest rates go up, the value of your current bonds on the market _______.
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Goes down. Market prices of bonds tend to have an inverse relationship to interest rates.
5.
In investment strategies, risk in traditional terms is _______.
Choose wisely. There is only one correct answer.
Good and bad. Risk in traditional terms can mean you fail to make money, or even lose it; but possible returns usually increase with the amount of risk.