Unit 6 - Investing - Review

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? Options: 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

Which is NOT a stock market index? New York Stock Exchange, Dow Jones Industrial Average, S&P 500, Nasdaq

Back

New York Stock Exchange

Front

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

Back

Fall

Front

The face value of a bond is called

Back

Par Value

Front

Andy earned $300 on a $1000 investment. What is his current ROI (return on investment)?

Back

30%

Front

Brokers who suggest specific investments, create an investment plan, & make adjustments are

Back

Full-Service Brokers

Front

A diversified portfolio is desirable because

Back

It decreases risk

Front

Putting regular amounts of money into an investment account at specific time intervals is

Back

Dollar cost averaging