A _____________ Is an Employer-Sponsored Retirement Account, and Participating in One

question 29

Multiple Choice

A _____________ is an employer-sponsored retirement account, and participating in one is one of the easiest ways to begin an investment program.

• A) TRA account
• B) 301(a) account
• C) 509(re) account
• D) 401(k) account
• E) 321(a) account

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Definitions:

Stocks

Shares of ownership in a company, which represent a claim on the company's earnings and assets.

Investment

Applying resources, typically financial, in order to gain income or profit.

Portfolio

An aggregation of financial instruments such as company shares, debt securities, tangible commodities, available cash, and cash-like resources, including mutual funds and ETFs.

Perfectly Positively Correlated

A situation where two variables move in the same direction at the same rate, represented by a correlation coefficient of +1.