EVERFI – INVESTING QUIZ

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Which of the following is generally true about 401(k) and 403(b) retirement plans?

All of the above

Which of the following is generally true about 401(k) and 403(b) retirement plans?

higher; higher

What is the primary reason to issue stock?

To raise money to grow the company

Which of the following correctly orders the investments from LOWER risk to HIGHER risk?

Treasury bond − Diversified mutual fund – Stock

If an employer does not offer a retirement plan, what might be another way to save for retirement?

401k Plan

If an investment is considered "volatile", it means…

the value of the investment may be hard to predict

What are dividends?

A distribution of a small percentage of profits to shareholders.

Why is a high-quality bond typically considered a lower-risk investment than a stock?

A bond typically pays a fixed, predictable amount of interest each year.

When you buy a ____ , you are loaning money to an organization.

Bond

Which investment type typically carries the least risk?

Savings Accounts

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