Modified Study Guide Chapter 7 And 8 Q1-14: Question Preview (ID: 21924)

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Which is a benefit of the Roth ira?
a) unlimited tax contributions
b) grows tax free
c) you can withdraw at age 40.5

___ are great for your emergency fund due to their liquidity and stability
a) money markets
b) roth ira's
c) compound interest

What is the difference between wholesale and retail price?
a) foreclosure
b) mark up
c) auction

What is a public sale in which property or items of merchandise are sold to the highest bidder?
a) auction
b) pawn shop
c) garage sale

The ___ price is usually a lot higher than the whole sale price
a) mark up
b) savings
c) online

What is a degree of uncertainty of return?
a) risk
b) liquidity
c) portfolio

In order to start investing you must have
a) a lot of money
b) no money
c) any sum of money

What is a retail shop where people sale items and the owner of the shop gets a percentage of the sale?
a) walk away power
b) consignment shop
c) negotiate

Using ___ gives you more bargaining power than using credit
a) cash
b) checks
c) gold

The benefit of diversification in your investment is
a) reduced risk
b) increased risk
c) reduced return

What is it called when you divide your money between several different types of investments?
a) liquidity
b) diversification
c) stocks

The ___ IRA grows tax free because you have already paid taxes on it.
a) Roth
b) 401K
c) life insurance

What is a retail establishment that sells items that have been traded as security for cash?
a) pawn shop
b) consignment shop
c) mall

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