California State University, Northridge » Family and Consumer Sciences » FCS 323 - Family and Individual Money Management » Spring 2022

Question #1

Your collection of multiple investments in different assets chosen to meet your financial goals is your

A. market basket.

B. monetary assets.

C. net worth.

D. portfolio.

Question #2

Financial risk relates to the possibility that the investment

A. is subject to a sharp price change.

B. will fall in value.

C. is illiquid.

D. will fail to pay a return to the investor.

Question #3

Selling shares of stock for more than you originally paid is called

A. current income.

B. leverage.

C. modern portfolio theory.

D. capital gains.

Question #4

If you have a(n) ____________ investment philosophy, you accept very little risk and are generally rewarded with relatively low rates of return.

A. moderate

B. ultraconservative

C. aggressive

D. conservative

Question #5

Market risk is also known as

A. random risk

B. diversifiable risk.

C. unsystematic risk.

D. systematic risk