Unit 5 Saving & Investing

Front

In the Relative Risk Pyramid, where would you place savings accounts?

Back

Base (lowest risk)

Front

Which savings vehicle typically offers a higher interest rate than standard savings accounts but may come with higher minimum balance requirements? It's a hybrid between a checking and savings account.

Back

Money Market Account

Front

The relationship between risk and return can be stated as

Back

Higher risk indicates higher return

Front

Act of purchasing assets (stocks, bonds, property) with expectation that they will increase in value over time.

Back

Investing

Front

Which account is the least liquid? Options: Checking Account, Savings Account, Money Market Deposit Account, Certificate of Deposit

Back

Certificate of Deposit

Front

Which of the following is a feature of a certificate of deposit (CD)? Options: Funds deposited in a CD are held for a certain length of time., Funds deposited in a CD have tiered interest rates., Funds deposited in a CD are very liquid., Funds deposited in a CD can be accessed via check or debit card.

Back

Funds deposited in a CD are held for a certain length of time.

Front

Determine whether the action is an example of saving or investing: Buying shares in your favorite clothing company.

Back

Investing

Front

Determine whether the action is an example of saving or investing: Putting $20 per paycheck into an account to help pay for books during college.

Back

Saving

Front

How can someone make money from investing in a stock? Options: They sell the stock for a lower price than what they bought it for, They receive dividends or they sell the stock at a higher price than what they bought it for, The stock loses value but the overall market experiences a positive return, They sell the stock for the same price they bought it for

Back

They receive dividends or they sell the stock at a higher price than what they bought it for

Front

How is a bond different from a stock?

Back

A bond is a loan you give to an organization while a stock is partial ownership in a company.