Saving and Investing

A pool of money collected from many investors, and used to buy stocks, bonds, and other securities.

• stock

• mutual fund

• bond

• goals

Much less risky

• saving

• investing

Deposit is usually not insured

• investing

• saving

The amount of money you earn compared to the amount of money you invest

• Equity investment

• term

• fixed income statements

• return on investment (ROI)

A type of time account

• CD

• stock

• bond

• mutual fund

Provides fixed interest payments for a set period of time

• money

• stock

• bond

• mutual fund

All are benefits of saving, except

• safe, reliable, convenient

• earns a higher return of interest

• earns a small amount of interest

• insured by the FDIC

These are the three basic types of savings accounts

• CDs, stocks, bonds

• passbook accounts, time accounts, money market accounts

• stocks, bonds, and mutual funds

• none of the above

Saving and investing provide opportunities to increase your wealth, leading to financial security

• True

• False

Bonds are a safer investment than stocks

• True

• False