Investing - Unit 3

Front

A key difference between saving and investing is

Back

Saving is for emergencies & goals, investing is for long-term wealth

Front

Which would be considered the highest risk investment type? Stock, Mutual Fund, Bond, Money Market Account

Back

Stock

Front

The relationship between risk and return can be stated as

Back

Higher risk indicates higher return

Front

If interest rates rise, what will typically happen to bond prices?

Back

Fall

Front

A _____ is a loan given to an organization while a _______ is partial ownership in the company.

Back

bond, stock

Front

What's the main difference between a Roth IRA and a Traditional IRA?

Back

Roth IRAs have you pay taxes upfront.

Front

What is the main appeal of an index fund?

Back

They are typically low cost and diversified investments.

Front

An account that is used to buy and sell stocks, bonds, and funds is called a

Back

Brokerage Account

Front

A diversified portfolio is desirable because

Back

It decreases risk

Front

Why is it important to start investing as soon as possible?

Back

You have more time for your money to compound (grow)