Question 1

As their situation began to improve,the financial adviser began discussing investment strategies with Penny and Ir A.He suggested that they might want to invest in the stock market.He surprised them by saying that they should try to buy stocks during a major downturn in the market-just when most people were trying to sell.This statement suggests that the financial adviser agreed with the:

Accepted Answer

A)  contrarian approach to investing.
B)  concept of "buying short."
C)  use of leverage in the stock market.
D)  random walk theory of investment strategy.E) B) and D)
F) C) and D)

Question 2

An advantage of both traditional and Roth IRAs is that both the income invested and the earnings from these investments are never taxed.

Accepted Answer

A) True 
 B)False

Question 3

A person in the 25 percent tax bracket who invests $1,000 in a traditional IRA immediately postpones $250 in taxes.

Accepted Answer

A) True 
 B)False

Question 4

Accumulating money through savings allows you to participate in the growth of a capitalist society.

Accepted Answer

A) True 
 B)False

Exam 25: Managing Personal Finances

Correct Answer
verified

An advantage of both traditional and Roth IRAs is that both the income invested and the earnings from these investments are never taxed.

Correct Answer
verified

Accumulating money through savings allows you to participate in the growth of a capitalist society.

Correct Answer
verified

A person in the 25 percent tax bracket who invests $1,000 in a traditional IRA immediately postpones $250 in taxes.

Correct Answer
verified

Exam 25: Managing Personal Finances

Correct AnswerverifiedShow Answer

An advantage of both traditional and Roth IRAs is that both the income invested and the earnings from these investments are never taxed.

Correct AnswerverifiedShow Answer

Accumulating money through savings allows you to participate in the growth of a capitalist society.

Correct AnswerverifiedShow Answer

A person in the 25 percent tax bracket who invests $1,000 in a traditional IRA immediately postpones $250 in taxes.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified