Maya needs $4,000 for a down payment in six months and must have the full amount. Using the account features shown, where should she keep it?

Andre is investing money he will not need for 35 years. Which choice best fits this long time horizon if he can accept market ups and downs?

Kira will use $2,500 for tuition in 18 months. Her priority is preserving the money rather than seeking a high return. What is the best choice?

Why can an investor with a 30-year retirement horizon usually take more market risk than someone buying a car next year?

Noah needs all $1,200 in four months for an emergency repair. His money is currently in a volatile stock fund. What action best matches his need for certainty?

For a goal 15 years away, which allocation is generally more likely to provide growth while still spreading risk across asset types?

Tariq wants an emergency fund for expenses that could happen any month. Which account feature matters most?

Which investment is most likely to have the greatest short-term volatility?

Elena needs $900 in two months for a required fee. Which option best protects her ability to pay the exact amount on time?

A savings account earns a lower expected return than a diversified stock fund. What tradeoff most explains this difference?

Use the growth graph. About how much is in the account at Year 10?

A $500 account earns 10% interest compounded annually. What is its balance after two years?

Two people make equal monthly deposits at the same return, but Priya began investing 10 years earlier. Why can Priya end with more money?

A $1,000 investment earns 5% compounded annually for two years. What is the ending balance?

Use the graph. During which interval does the account have the largest dollar increase?

Account A and Account B each receive a $200 deposit today. A earns 6% and B earns 3%, both compounded annually. After two years, how much more does A have than B?

What does compound growth mean?

A $200 investment earns 5% simple interest each year for two years. How much interest does it earn?

Use the graph. What is the account balance at the end of Year 2?

Jordan delays investing $1,000 for five years while the account earns a positive compound return. Compared with investing today, what is the direct cost of waiting?

A fund tracks a broad market index, trades on an exchange during the day, and has a 0.03% expense ratio. What type of fund is it?

A pooled fund is priced once a day after the market closes. Its manager selects securities to try to outperform an index, and it charges a 0.85% expense ratio. What type is it?

A pooled fund tracks a market index, is passively managed, and is priced once after the market closes. What type is it?

Use the fund table. What type of fund is Fund A?

A fund lets investors own shares of a large pool of stocks and bonds, and its shares are bought or redeemed at net asset value after the market closes. What is it?

Use the table. Which fund is most clearly passively managed?

What feature most directly distinguishes an ETF from a mutual fund?

Which description identifies an actively managed fund?

A fund owns the same stocks as a broad index in similar proportions and aims to match, not beat, that index. What type is it?

Use the table. Which fund is an index mutual fund rather than an ETF?

Avery contributes after-tax dollars now and wants qualified retirement withdrawals to be tax-free. Which IRA treatment fits?

Malik wants a current tax deduction for an eligible IRA contribution and understands he may owe tax on withdrawals later. Which IRA fits?

Rosa's employer matches her 401(k) contributions dollar for dollar up to 4% of her pay, but she contributes only 2%. What is the main cost of this choice?

Ana's IRA contribution changes her taxes this year as the table shows. Which type of IRA gives this tax benefit now rather than tax-free qualified withdrawals later?

The table shows Jalen's 401(k) contribution and his employer's match rule. How much is added to the account before investment gains or losses?

The table shows Dana's employer match balance and vested percentage when she leaves her 401(k). How much of the employer match does she keep?

Which statement correctly describes a Roth IRA?

Use the pay stub. Which type of account receives the plan deferral and the employer match it shows?

Sam expects his tax rate in retirement to be higher than it is now. Which IRA is usually the better fit?

A portfolio is 90% one company's stock and 10% cash. Which change most improves diversification?

Use the table. What percentage of this portfolio is invested in bonds?

Use the table. Which holding is the largest part of Morgan's portfolio?

A $10,000 portfolio has a target allocation of 60% stocks and 40% bonds. How many dollars should be in stocks at the target?

A portfolio owns four different stock funds, but every fund holds mostly the same large technology companies. What risk remains?

A student is nearing a goal date and wants to reduce portfolio volatility. Which change most directly does that?

Use the table. A $10,000 portfolio has its current holdings and target allocations shown. What rebalance would restore the target?

What does asset allocation describe?

A portfolio has 50% in a U.S. stock fund, 30% in a bond fund, and 20% in an international stock fund. Which statement is best supported?

Use the table. Which change would add a different asset type to Casey's all-stock portfolio?

Which choice best describes diversification?