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Good Investment or Bad Investment?
by Staff
In a poor economy, we think twice about every dollar we spend, every dollar we invest and every dollar we could lose. Do you have the financial know-how to pick the best investments and pass on the worst?

Which type of real estate investment is considered sound in a down economy?

  • shares of a new office building
  • purchase of a family home
  • timeshares

Which investment can yield more than $200,000 in 40 years?

  • playing the lottery
  • investing $25 per week in a stock portfolio
  • saving money in an interest-earning savings account

Which collectible item will produce a sure profit?

  • classic cars
  • antique costume jewelry
  • neither

How much time, on average, does it take to make money on gold?

  • 6 months
  • 1 year
  • 10 years or more

What downsides do investments in gold, art, classic cars and antiques have in common?

  • They incur insurance and storage costs.
  • They do not provide ongoing income.
  • both of the above

What are the long-term advantages of saving money in a bank passbook savings account?

  • The deposits are insured by the government.
  • You won't lose cash in volatile trading markets.
  • none of the above

Which type of life insurance provides the most predictable payoff?

  • term insurance
  • cash value insurance
  • variable annuities

Which investment is best considered with a crystal ball?

  • options
  • futures
  • both

Which type of investment in the stock market is most likely to be a fraud?

  • blue chip stocks
  • hedge funds
  • low-cost stocks

What are the signs that a potential investment could be a scam?

  • a fund with detailed data showing steady annual returns that outpace the stock market
  • a fund that never shows a bad year
  • both of the above