What is a Certificate of Deposit (CD)?
Investing, Stocks, & Bonds Flashcard

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•
Mathematics
•
9th Grade
•
Hard
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1.
FLASHCARD QUESTION
Front
Back
A CD is a low-risk investment where you deposit money for a fixed period and earn interest.
2.
FLASHCARD QUESTION
Front
What is the primary way to earn money from bonds?
Back
You earn interest from bonds, which is paid at regular intervals.
3.
FLASHCARD QUESTION
Front
What is the main difference between stocks and bonds?
Back
Stocks represent ownership in a company, while bonds are loans made to a company or government.
4.
FLASHCARD QUESTION
Front
What does it mean to diversify your investments?
Back
Diversifying means spreading your investments across different assets to reduce risk.
5.
FLASHCARD QUESTION
Front
What is a stock exchange?
Back
A stock exchange is a marketplace where stocks are bought and sold.
6.
FLASHCARD QUESTION
Front
What is the risk-return tradeoff in investing?
Back
The risk-return tradeoff is the principle that potential return rises with an increase in risk.
7.
FLASHCARD QUESTION
Front
What are dividends?
Back
Dividends are payments made by a corporation to its shareholders, usually from profits.
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