Saving Money

An IOU issued by a company, municipality, or the federal government in exchange for a loan from an investor that will be repaid with a set rate of return is a:

• Stock

• Bond

• Mutual Fund

• Savings Account

• Certificate of Deposit (CD)

A savings instrument for a specific amount of time from a depository institution like a bank or a credit union is a:

• Stock

• Bond

• Mutual Fund

• Savings Account

• Certificate of Deposit (CD)

A share of a corporation sold to the public - these are ways you can actually own shares of a business corporation

• Stock

• Bond

• Mutual Fund

• Savings Account

• Certificate of Deposit (CD)

A collection of stocks or bonds of various corporations is a:

• Stock

• Bond

• Mutual Fund

• Savings Account

• Certificate of Deposit (CD)

An interest-bearing account where people put money for future use is a:

• Stock

• Bond

• Mutual Fund

• Savings Account

• Certificate of Deposit (CD)

Interest, in terms of finances, is:

• A fee received or paid for the use of money.

• When you really like someone a lot.

• A term describing how much you desire to invest in a certain asset.

• Money set aside from your paycheck to purchase gifts and other luxury items.

A business that provides money-related services is known as a:

• financial institution

• stock broker

• bounty hunter

• tax service

Which of the following is NOT an example of a financial institution?

• bank

• credit union

• mortgage company

• electric company

To invest money means:

• To commit money to gain a profit or earn interest.

• To put money in a bank and take it out later.

• To pay all your bills on time so you don't go to collections.

• To take money out of the bank so you always have some, just in case.

An opportunity cost is:

• The next best alternative given up when making a financial choice.

• How much money you have to pay to experience an opportunity (for example, college).

• How much more money one choice costs than another.

• The amount of money the average adult should save to be able to experience an acceptable amount of opportunities.