Dave Ramsey Finance Chapter 12 Test with Complete Solutions

Dave Ramsey Finance Chapter 12 Test with Complete Solutions Usually, the more liquid an asset is (like cash in the bank), the less return you can expect. true false True Be aware of any ____ you might receive, but don't bank on it as a key part of your retirement plan. A. Tax refunds B. Inheritance C. Bonus checks D. Additional work B The three components of compound growth are money, time and ____. A. A large paycheck B. Investments C. Retirement D. Rate of return D You should wait to be generous until you have money to give. true false False What is the fifth foundation? A. Pay cash for your home B. Build wealth and give. C. Save for retirement. D. Pay cash for college. B A security that represents part ownership of a company is call a(n) ____ A. Stock B. Bond C. Certificate of Deposit D. Annuity A When you invest in a mutual fund, you are contributing to a pool of money that will be... A. Given to hundreds of local charities in your area B. Invested in a mix of stocks, bonds and money market accounts C. Taxed based on each individual investor's annual salary D. Put into a separate savings account for your children to inherit someday B Diversification reduces ____ by using a mix of investment types in your portfolio. A. Income B. Retirement funds C. Risk D. Mutual funds C