Financial Literacy Flashcard

Front

What is the investment that has the highest risk yet the highest potential for returns?

Back

Stocks

Front

This is purchased to protect someone from risks.

Back

Insurance

Front

A non-profit financial institution that holds deposits and loans out money is known as

Back

Credit Union

Front

If you were to make a financial investment, what would make it grow fastest? Options: Dividends, Simple interest, Compound interest, Real Estate

Back

Compound interest

Front

What are returns paid on a stock called?

Back

Dividends

Front

What type of insurance would you buy to make sure your family is financially stable if you were to die?

Back

Life insurance

Front

What do banks pay to people who deposit money with them?

Back

Interest Earned

Front

What is an investment?

Back

Allocating money with the expectation of generating an income or profit.

Front

What is investing?

Back

Using money to make more money

Front

What is a risk management technique that mixes a wide variety of investments within an investment portfolio?

Back

Diversification