A key difference between saving and investing is
Investing

Flashcard
•
Life Skills
•
9th - 12th Grade
•
Hard
Nicole Haynes
FREE Resource
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18 questions
Show all answers
1.
FLASHCARD QUESTION
Front
Back
Saving is for emergencies & goals, investing is for long-term wealth
2.
FLASHCARD QUESTION
Front
Why is compound interest more beneficial than simple interest?
Back
Your money grows faster when it is compounded
3.
FLASHCARD QUESTION
Front
Which would be considered the highest risk investment type? Options: Stock, Mutual Fund, Bond, Money Market Account
Back
Stock
4.
FLASHCARD QUESTION
Front
The relationship between risk and return can be stated as
Back
Higher risk indicates higher return
5.
FLASHCARD QUESTION
Front
If Jonathan is earning 2% on an investment and inflation is increasing by 3%, what is happening to his purchasing power?
Back
It's decreasing
6.
FLASHCARD QUESTION
Front
If interest rates rise, what will typically happen to bond prices?
Back
Fall
7.
FLASHCARD QUESTION
Front
A _____ is a loan given to an organization while a _______ is partial ownership in the company.
Back
bond, stock
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