Nearpod Savings and Investment Vocabulary FIB Make-up

What is the definition of 'interest' in the context of savings and investment?

• Money paid for the use of a credit card

• Money paid irregularly for the use of money lent

• Money paid for the use of a debit card

• Money paid regularly at a particular rate for the use of money lent or for delaying the repayment of a debt.

What does 'diversification' mean in the context of investment?

• Spending all money on a single high-risk investment

• Spreading investments across different assets to reduce risk

• Investing in only one company to avoid confusion

• Putting all investments in one type of asset to maximize returns

What is a 'stock' in the context of investment?

• A type of currency

• Ownership in a corporation

• A piece of clothing

• A type of soup

What is 'liquidity' in the context of investment?

• Liquidity is the measure of an investment's taste

• Liquidity is the ability of an investment to produce electricity

• Liquidity refers to the amount of water in an investment

• Liquidity refers to the ease with which an asset or security can be converted into cash without affecting its market price.

What is 'risk' in the context of investment?

• Stable and predictable investment outcome

• Certainty in achieving expected returns

• Potential for loss or uncertainty in achieving expected returns

• Guaranteed profit with no chance of loss