11. A “load” in the financial world is: a) a financial adviser who sits around and doesn’t do much work, b) an energy fund that rises with high electricity use, c) a sales charge or commission if mutual fund shares are purchased through a broker or other financial professional, d) money available to spend in an investment account.
12. Rebalancing is a) analysis of two different investment options to see which one is better, b) adjustment of an investment portfolio with stocks and bonds to reflect investment goals, c) neither of these.
13. “Cash is trash” refers to: a) a nickname for the IRS requirement that financial records must be kept in strict accordance with the law, b) low interest rates earned by holding cash or cash equivalents, such as short-term bank CDs, U.S. Treasury bills and money market mutual funds, c) inflation that ruins our economic system, d) an anti-Euro campaign slogan.
14, True or false? A mutual fund investment goal is to choose the least expensive of comparably rated funds.
15. The problem with annuities, according to the Texas guide, is: a) they are too complicated with many types of fees, b) they’re banned as of Jan. 1, 2019; c) annuities investors are prohibited from buying stock, d) most of the money goes to China, which controls the market.
Answers: 1-a, 2-c, 3-false, 4-d, 5-d, 6-true, 7-d, 8-d, 9-a, 10-d, 11-c, 12-b, 13-b, 14-true, 15-a.
How’d you do? 11 out of 15 is good enough for pass.
For your free copy of the Texas Investor Guide, email Robert Elder at email@example.com. Tell him how many copies you’d like and include your mailing address.
Staff writer Marina Trahan Martinez contributed to this report.
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