Personal Finance Chapter 8 Test Review

A list of all your investments

• Liquidity

• 401(K)

• Portfolio

• Mutual Fund

Quality of an asset that permits it to be converted quickly to cash without loss of value

• Liquidity

• Risk

• IRA

• Share

A piece of ownership in a company, mutual fund, or other investment

• IRA

• Investment

• Risk

• Share

A retirement savings plan offered by a corporation to its employees; the employee contributes money from his/her gross pay, and the money is tax deferred

• 401(K)

• IRA

• Investment

• Mutual Fund

Account or arrangement in which one would put their money for long-term growth

• Mutual Fund

• Investment

• 401(K)

• Portfolio

Degree of uncertainty of return on an asset

• Share

• Liquidity

• Risk

• Portfolio

Pool of money managed by an investment company and invested in multiple companies

• Investment

• 401(K)

• IRA

• Mutual Fund

Tax-deferred arrangement for individuals with earned income; individual retirement arrangement

• IRA

• Share

• Portfolio

• 401(K)

Single stocks are good places to keep an emergency fund

• True

• False

Diversification lowers what?

• Investments

• Liquidity

• Risk

• Debt