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
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?
antique costume jewelry
How much time, on average, does it take to make money on gold?
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?
cash value insurance
Which investment is best considered with a crystal ball?
Which type of investment in the stock market is most likely to be a fraud?
blue chip 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