AS 474 EXAM 3 2026 Questions and
Answers Graded A+
What is the definition of a market correction? - Correct answer-A 10% decline
from a recent market high.
Per the article, how long does it take on average to recover from a market
correction? - Correct answer-4 months.
Per the article, who is hurt most by a stock market decline? - Correct answer-
Emotional people who are likely to do something irrational.
What is the investment advice for younger Americans starting a 401(k)? - Correct
answer-Boost contributions (get the match), ignore scary headlines, and remain in
the stock market.
What is the investment advice for Americans nearing retirement? - Correct answer-
Don't let emotions win, have cash available for short-term needs, and focus on
asset allocation.
Review: Who funds a Pension? - Correct answer-The Employer ONLY.
©COPYRIGHT 2026, ALL RIGHTS RESERVED 1
, Review: Who funds a 401(k)? - Correct answer-The employer and/or the
employee.
Review: Who funds an IRA? - Correct answer-Anyone, as long as they have
earned income.
When was the IRA created and why? - Correct answer-1974, to help employees of
businesses without pension plans.
What is a "Spousal IRA"? - Correct answer-A working spouse can contribute to a
non-working spouse's IRA.
What are "Champagne Problems" for retirement accounts? - Correct answer-
Making too much money to be eligible (income limits) or hitting maximum
contribution limits.
What is the 2024 contribution limit for a 401(k) (under age 50)? - Correct answer-
$23,000.00
What is the 2024 contribution limit for an IRA (under age 50)? - Correct answer-
$7,000.00
What are "catch-up" contributions? - Correct answer-Extra amounts allowed for
contributions for those over age 50.
©COPYRIGHT 2026, ALL RIGHTS RESERVED 2
Answers Graded A+
What is the definition of a market correction? - Correct answer-A 10% decline
from a recent market high.
Per the article, how long does it take on average to recover from a market
correction? - Correct answer-4 months.
Per the article, who is hurt most by a stock market decline? - Correct answer-
Emotional people who are likely to do something irrational.
What is the investment advice for younger Americans starting a 401(k)? - Correct
answer-Boost contributions (get the match), ignore scary headlines, and remain in
the stock market.
What is the investment advice for Americans nearing retirement? - Correct answer-
Don't let emotions win, have cash available for short-term needs, and focus on
asset allocation.
Review: Who funds a Pension? - Correct answer-The Employer ONLY.
©COPYRIGHT 2026, ALL RIGHTS RESERVED 1
, Review: Who funds a 401(k)? - Correct answer-The employer and/or the
employee.
Review: Who funds an IRA? - Correct answer-Anyone, as long as they have
earned income.
When was the IRA created and why? - Correct answer-1974, to help employees of
businesses without pension plans.
What is a "Spousal IRA"? - Correct answer-A working spouse can contribute to a
non-working spouse's IRA.
What are "Champagne Problems" for retirement accounts? - Correct answer-
Making too much money to be eligible (income limits) or hitting maximum
contribution limits.
What is the 2024 contribution limit for a 401(k) (under age 50)? - Correct answer-
$23,000.00
What is the 2024 contribution limit for an IRA (under age 50)? - Correct answer-
$7,000.00
What are "catch-up" contributions? - Correct answer-Extra amounts allowed for
contributions for those over age 50.
©COPYRIGHT 2026, ALL RIGHTS RESERVED 2
