Investment Terms 1

Front

Spreading your investments around to increase financial security

Back

Diversification

Front

How quickly and easily an asset can be converted into cash is called...

Back

Liquidity

Front

The riskier an investment is the more likely it is to have a higher yield (make more money)

Back

True

Front

Earning interest on initial investment plus any interest earned is called...

Back

Compound interest

Front

Compared to other options, how liquid is a savings account?

Back

More liquid than a Certificate of Deposit (CD)

Front

How do you "pay yourself first"?

Back

Put money in savings before paying bills

Front

The general rise in prices over time is called...

Back

inflation

Front

Which of the following is true of investments? Options: higher risk = lower return, lower risk = higher return, higher risk = higher return, they are a bad idea

Back

higher risk = higher return

Front

Rule of 72.  How many years to double my money if I get a 9% return on investment?

Back

8 years

Front

Savings accounts are considered high risk!

Back

False