PFL & Eco Final Exam Review Part #2

Front

A type of fund where components of the fund track the performance of a financial market index

Back

Index Fund

Front

The possibility of loss or injury

Back

Risk

Front

The profit or loss from an investment

Back

Return

Front

The possibility that an asset will fail to produce a return or will lose value over time

Back

Financial Risk

Front

When the borrower fails to make full and timely payments

Back

Default Risk

Front

The loss of part or all of an investment

Back

Capital-loss Risk

Front

When the rate of return is less than the rate of inflation

Back

Inflation Risk

Front

When an investment cannot be sold quickly at an acceptable price

Back

Liquidity Risk

Front

True or False: When Estate planning, it is extremely important to leave your family a valid will before you pass away.

Back

True

Front

What are the two types of goals?

Back

Personal and Financial