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1.
In general, bonds have more volatility and higher returns than either stocks or cash.
Choose wisely. There is only one correct answer.
False. While bonds may show more volatility than cash, stocks generally have higher returns and volatility than bonds or cash.
2.
The goal of a tax-managed fund is tax efficiency.
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True. The goal of a tax-managed fund is tax efficiency.
3.
The amount of money you invest in an asset depends on _______.
Choose wisely. There is only one correct answer.
Both of the above. The way you allocate your money depends on your risk tolerance and time horizon.
4.
In the long term, bonds and cash generally have lower returns than stocks.
Choose wisely. There is only one correct answer.
True. In the long term, stocks tend to have higher returns than other investments.
5.
Inflation means you will have more spending power in the future than you do today.
Choose wisely. There is only one correct answer.
False. Inflation leads to lower spending power in the future.