CON 305 Quiz #7
T/F: By setting a maximum target for our accumulation of wealth, we can help avoid hoarding. -
ANS -True.
T/F: You cannot invest without having positive cash flow. - ANS -True.
T/F: The end goal of an accumulation strategy is to accumulate wealth. - ANS -False.
T/F: There is no way to minimize your risk in investing. - ANS -False.
T/F: Diversification in investing is a Biblical principle that means to spread around. - ANS -True.
T/F: Greed is one attitude that may lead me to invest unwisely. - ANS -True.
T/F: Paying off debt does not provide any "return" because we are not earning anything. - ANS
-False.
T/F: You should start investing before you pay off your credit cards if you think that you can
make a high return. - ANS -False.
T/F: The single most important strategy for reducing risk in investments is to have diversity in
your investment and spread it among several companies and types of investments. - ANS
-True.
T/F: You can avoid all financial risk by not investing in stocks and bonds. - ANS -False.
T/F: Even though you are more risk averse than your instructor who is already retired from a
business career, you should take more risk in investing your retirement funds. - ANS -True.
T/F: Your neighbor tells you all about how he made money in the stock market. Your best
strategy would be to copy what he does. - ANS -False.
T/F: If you are smart enough or work hard enough, you can find the perfect investment. - ANS
-False.
T/F: Mutual funds offer professional money management and diversification. - ANS -True.
The Millionaire's Secret is to... - ANS -Spend less than you earn and invest the savings.
T/F: By setting a maximum target for our accumulation of wealth, we can help avoid hoarding. -
ANS -True.
T/F: You cannot invest without having positive cash flow. - ANS -True.
T/F: The end goal of an accumulation strategy is to accumulate wealth. - ANS -False.
T/F: There is no way to minimize your risk in investing. - ANS -False.
T/F: Diversification in investing is a Biblical principle that means to spread around. - ANS -True.
T/F: Greed is one attitude that may lead me to invest unwisely. - ANS -True.
T/F: Paying off debt does not provide any "return" because we are not earning anything. - ANS
-False.
T/F: You should start investing before you pay off your credit cards if you think that you can
make a high return. - ANS -False.
T/F: The single most important strategy for reducing risk in investments is to have diversity in
your investment and spread it among several companies and types of investments. - ANS
-True.
T/F: You can avoid all financial risk by not investing in stocks and bonds. - ANS -False.
T/F: Even though you are more risk averse than your instructor who is already retired from a
business career, you should take more risk in investing your retirement funds. - ANS -True.
T/F: Your neighbor tells you all about how he made money in the stock market. Your best
strategy would be to copy what he does. - ANS -False.
T/F: If you are smart enough or work hard enough, you can find the perfect investment. - ANS
-False.
T/F: Mutual funds offer professional money management and diversification. - ANS -True.
The Millionaire's Secret is to... - ANS -Spend less than you earn and invest the savings.
