Credit cards:Are a cost effective way of financing investment purchases.Have interest payments that are not tax deductible.Typically have lower interest rates than home equity loans.Often have 3 month grace periods on new purchases.
If you call your broker to purchase a "round lot" you are:Buying a mutual fund of 100 different stocks.Authorizing him/her to decide how many shares to buy.Negotiating commissions on future purchases and sales.Purchasing 100 shares of a specific stock.
Since the mid-1920s inflation in the United States has averaged:About 3 percent.About 7 percent.About 10 percent.About 12 percent
The total stock market (S&P 500) return during the 1990s was:Predicted by most Wall Street analysts at the beginning of the decade.Lower than the historical averageThe highest of any decade in the 20th century.Approximately the same as the total return during the 1970s.
The financial pyramid implies that:An investment near the top of the pyramid has a higher potential return, but also carries higher risk.Egyptian pharoahs were astute investors.Eating nutritious meals from the "food pyramid" will make you a better investor."Pyramid" or "Ponzi" schemes are good investments.
A prudent investor:Does not have to consider the tax effect of long-term gains.Evaluates his/her investments on an after-tax basis.Studiously avoids income-shifting among funds.Knows that a drop in the dividend payout signals a stronger firm.
Variable life insurance:Offers tax deferral.May provide higher return potential and greater risk than a whole life policy.Allows you to invest a portion of the premium in various subaccounts.All of the above.
The number of stocks that make up the Dow Jones Industrial Average is:5,000.500.30.10.
