True it False????? Finanical literacy?

[shsbsh]

1. Most finanical institutions have insurance that protects the savings if depositors
2. Government securities are considered to be one of the least risky investments
3. The greater the risk, the greater the potentional for higher return
4. When investing in the stock market people attempt to buy low sell high
5. It is always a good idea to invest in what you know
6. All savings and investment vehicles subject you to one it more types of risk

[reena]

All of them True... but that doesn't change the fact that you are not financially literate.

[PrivateBanker]

They are all true - but #5 is iffy. While it may be advisable to invest in "what you know", I would argue that that would be true regarding the TYPE of investment, e.g. stocks, bonds, derivatives. You don't have to know pharmacology to invest in Pfizer stock. You could know a lot about Facebook but I wouldn't recommend buying their stock.