Of the following, the safest type of investment is:

Under the mattress.
An FDIC-insured CD.
An international growth mutual fund.
An Internet stock.

Since the mid-1920s inflation in the United States has averaged:

About 3 percent.
About 7 percent.
About 10 percent.
About 12 percent

A prudent investor:

Does not have to consider the tax effect of long-term gains.
Evaluates his/her investments on an after-tax basis.
Studiously avoids income-shifting among funds.
Knows that a drop in the dividend payout signals a stronger firm.

The astute investor is aware that:

Investment risk is limited to the fortunes of the specific security purchased.
Computers make investment decisions scientific and eliminate much of the risk.
Actual outcome of any investment may differ from the expected outcome.
When trading on-line, brokerage commissions are always negotiable.

A zero coupon bond:

Is sold at a discount to face value.
Is worthless.
Matures immediately.
Always has a call feature.

For tax purposes, a capital gain is considered long term if the investment was held more than:

1 day.
1 month.
1 year.
10 years.

The strength of economic growth in the United States is reported as changes in the:

The Gross Domestic Product (GDP).
The National Association of Securities Dealers Index (NASDAQ).
The Dow Jones Industrial Average (DJIA).
The Wealth Index of Investments and Inflation (WIII).

The P/E ratio:

Is the same for all firms in a given industry.
Does not change over time.
Is typically higher for firms whose earnings are expected to grow rapidly.
Is the same as the dividend yield.