Fundamentals of Investing

What is inflation?

• The rise in general level of prices

• The uncertainty the return on an investment will deviate from expected

• The number of times something happens to money

• The projected value of an investment at the end of a specified period of time.

The relationship between Risk & Return can be stated as

• Higher Risk / Lower Return

• Higher Risk / Higher Return

• Lower Risk / Higher Return

• No relationship exists between Risk and Return

A financial plan wold not be complete without both savings and investments

• True

• False

Investments are more liquid than savings tools.

• True

• False

With some investments, you may have to wait a long time to access funds.

• True

• False

Unlike savings tools, investments are

• Not secure

• More of a risk

• May not be easily converted to cash

• All answers are correct

Which has the potential to earn higher returns?

• Savings

• Investing

The profit or income generated by saving and investing is known as

• Debt

• Inflation

• Return

• Risk

All investments carry some investment risk.

• True

• False

Investments are a tool for building net worth.

• True

• False