Investing Tools

Front

Diversification is important in investing because…

Back

It helps you to balance your risk across different types of investments.

Front

Which of the following correctly orders the investments from LOWER risk to HIGHER risk?
Treasury bond − Stock − Diversified mutual fund,
Stock − Treasury bond − Diversified mutual fund,
Treasury bond − Diversified mutual fund – Stock,
Diversified mutual fund − Treasury bond − Stock

Back

Treasury bond − Diversified mutual fund – Stock

Front

Which investment is the most risky? Options: bond, stock, mutual fund, savings account

Back

stock

Front

Which type of investment is the least risky? Options: stock, bond, mutual fund, savings account

Back

savings account

Front

Which of the following statements best explains the purpose behind diversifying your portfolio: All's well that ends well, Don't put all your eggs in one basket, Everything in moderation., Just do it.

Back

Don't put all your eggs in one basket

Front

Profit from selling stock at a higher price than one paid for it.

Back

Capital Gain

Front

Interest calculated on both the principal and the accrued interest

Back

Compound interest

Front

If funds are withdrawn from a CD before the set time has expired, you may be required to: Forfeit interest, Make a new deposit, Reinvest, Pay a steep penalty fee

Back

Pay a steep penalty fee

Front

A key difference between saving and investing is

Back

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

Front

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

Back

You have more time for your money to compound