1. Which of the following is the most risky?
A. Buying stocks online
B. Buying a bond
C. Buying on margin
D. Buying from a broker
2. Which of the following is not a reason some investors never purchase stock?
A. They lack the knowledge.
B. They like safe investments such as CDs.
C. They are afraid of the risk.
D. They don't want to make better returns.
3. Investment Mistakes. Describe common investment mistakes made by individuals. Which of the following is not a common investment mistake made by individuals? (Select the best answer below.)
A. Taking excessive risks to recover their losses.
B. Filing for bankruptcy in order to salvage certain investments.
C. Investing money that could have been used to pay an existing loan.
D. Taking more risk when losses are not substantial.
4. Which of the following is not a reason some investors never purchase stock?
A. They like safe investments such as CDs.
B. They are afraid of the risk.
C. They don't want to make better returns.
D. They lack the knowledge.
5. If you want to achieve a fixed return over a short-term period without any risk, you should consider investing in
A. real estate.
B. bonds.
C. a certificate of deposit.
D. stock mutual funds.
6. If you don't need advice or other services offered, you are better off using a discount broker or Internet broker rather than a full−service broker.
True or False