Test Your Money $marts - TN EDU



Test Your Money $martsInstructions: Click on the correct answer. If you don't know the answer, click on "don't know."1.If you buy a company's stock,a. ?you own a part of the companyb. ?you have lent money to the companyc. ?you are liable for the company's debtsd. ?the company will return your original investment to you with intereste. ?don't know2.If you buy a company's bond,a. ?you own a part of the companyb. ?you have lent money to the companyc. ?you are liable for the company's debtsd. ?you can help manage the companye. ?don't know3.Over the past 70 years, the type of investment that has earned the most money, or the highest rate of return, for investors has beena. ?stocksb. ?corporate bondsc. ?savings accountsd. ?don't know4.If you buy the stock of a new company,a. ?you cannot lose moneyb. ?you can lose all the money you used to buy the stockc. ?you can lose only a portion of the money you used to buy the stockd. ?don't know5.Monique owns a wide variety of stocks, bonds, and mutual funds to lessen her risk of losing money. This is calleda. ?savingb. ?compoundingc. ?diversifyingd. ?don't know6.Carlos has saved some cash and faces these choices. What would be the best thing for him to do?a. ?put it in his savings accountb. ?invest in a mutual fundc. ?buy a U.S. Savings bondd. ?pay off the balance on his credit card that charges 18% intereste. ?don't know7.Maria wants to have $100,000 in 20 years. The sooner she starts to save, the less she'll need to save becausea. ?the stock market will go upb. ?interest rates will go upc. ?interest on her savings will start compoundingd. ?don't know8.Jennifer wants to take some of her savings and invest in a mutual fund because mutual funds area. ?guaranteed to earn more than savings accountsb. ?risk freec. ?managed by experts at picking investmentsd. ?don't know9.Bob is 22 years old and wants to start saving now for his retirement in 43 years. Of these choices, where should Bob put most of his money now for this long-term goal?a. ?a savings account at the bankb. ?a checking account at the bankc. ?a mutual fund that invests in stocksd. ?the stock of one companye. ?don't know10.Federal and state laws protect investors by requiring companies toa. ?show profits before they can sell stockb. ?give investors important informationc. ?pay dividendsd. ?repay investors who have lost moneye. ?don't knowSTAX Online Investing Game Instructions: Once you’ve finished the game, make sure to take a screenshot of your final portfolio and paste it below. Then write a 300-500-word reflection on your experience playing the game. Include the following in your reflection:Explain your investment strategy. Even if you didn’t have an investment strategy, describe why you made the decisions you made throughout the game. What do you believe you did well during the game? That is, what decisions and accomplishments are you most proud of? Why? What would you like to improve for next time? Why? What is one piece of advice you’d give to someone who is just playing the game for the first time? How has playing this game helped you understand the different types of investing available? And how did it help you understand the importance of diversifying your investments? ................
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