Components of Investing

What is the main difference between Regular Savings Accounts and High-Yield Savings Accounts (HYSA)?

• HYSA require a larger deposit than Regular savings accounts

• HYSA have a fixed term, like 20 years. Regular savings accounts can be for any amount of time.

• Regular savings accounts are HIGH risk, while HYSA are LOW risk.

• Regular savings accounts are only available in the building, while HYSA are only available online

What is the main characteristic of Mutual Funds (MFs)?

• Low risk

• High liquidity

• Fixed term, like 20 years

• Distributed risk

Which investment option distributes risk by owning tiny pieces of lots of companies?

• Savings Accounts

• Money Market Accounts (MMA)

• Bonds (Govt. and Corporate)

• Mutual Funds (MFs)

Which investment option can be bought on the stock exchange?

• Exchange-Traded Funds (ETFs)

• Bonds (Govt. and Corporate)

• Money Market Accounts (MMA)

• Savings Accounts

What is the liquidity of Bonds (Gov. and Corporate)?

• High

• Very Low

• Medium

• Medium-High

Which has the highest risk?

• Money Markey Account

• Mutual Funds

• Stocks

• Bonds

Which has the lowest potential for return?

• High-Yield Savings Account

• Mutual Fund

• Stocks

• Exchange

  Traded

  Funds

Which has the lowest liquidity (ability to get cash out of the investment)?

• CDs or Bonds

• Mutual Funds or ETFs

• Stocks

• Money Market Account

Which describes how easily money can be taken out of an investment.

• Risk

• Return

• Liquidity

• Diversification

Which describes the amount of money gained or lost on an investment..

• Risk

• Return

• Liquidity

• Diversification