Question

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Questions 28-34 are based on the following information Personal finance. Suppose you are an engineer and your spouse is a sales person. Neither of you knows finance, economics or financial statement analysis. Both you and your spouse are salary carners. Both are paid each month 28. After allocating sufficient money to your monthly living expense, mortgage education, other necessary expenses and emergency fund, you would like to use the remaining salary to do which of the following first Invest in your tax-friendly retirement account b. Invest in your taxable investment account c. Pay down your high-interest consumer det Make extra payment to your mortgage 29. Which of the following investment Strategies is appropriate for you? a Invest your money in actively managed mutual funds b. Invest your money in low-cost index funds like Vanguard Invest all your money in your company's stock d Invest all your money in local company's stocks 30. Which of the following investment strategies is appropriate for you? a. Save a certain amount of money each month and use the monthly savings to buy stocks or mutual fund shares cach month no matter how the market performs at the time b. Save a certain amount of money each month in a bank. At the end of each year, use the savings to buy stocks or mutual fund shares no matter how the market performs at the time C. Save a certain amount of money cach month in a bank Use your savings to buy stocks or mutual fund shares only when you think the market is bullish, and sell stocks or fund shares when you think the market is bearish d. Save a certain amount of money each month in a bank. Use your savings to buy stocks or mutual fund shares only when you think the market is bearish, and sell stocks or fund shares when you think the market is bullish 31. If you suddenly inherit a large amount of money, which of the following investment strategy is appropriate for you? a Stay focused. Immediately use all your money to buy a few stocks you like. b. Gradually invest your money in a few stocks you like. c. Immediately invest all your money in well-diversified mutual funds, such as index funds. d. Gradually invest your money in well-diversified mutual funds, such as index funds. 32. Which of the following investment strategies is appropriate for you! Only invest in US stocks or US mutual funds Only invest in foreign stocks or foreign mutual funds Invest in both US and foreign stocks or mutual funds. d None of the above 33. If your investment horizon in long, which of the following is LEAST appropriate for a Corporate bonds b Savings accounts Common stacks d Mutual funds

Answer 1

As both the spouse and yourself dont have much exposure to the field of finance

1.
Option C
2.
Option B
3.
Option A
4.
Option D
5.
Option C
6.
Option B