6-2 Types of Investments Review Business U

Which of the following is an example of an ownership investment?

• Money market funds

• Real estate

• Bonds

• Savings accounts

What is a bond?

• A debt security representing a loan made by an investor to a borrower.

• A type of equity security that represents ownership in a company.

• A financial instrument that represents a company's earnings.

• A short-term investment vehicle with a fixed interest rate.

What are lending investments?

• The act of lending money (principal amount) to an entity in exchange for interest payments and the return of the principal at the end of the loan term.

• Investing in stocks and expecting dividends.

• Purchasing real estate for rental income.

• Buying and selling commodities for profit.

What are ownership investments?

• Assets that are purchased and owned, giving the right to a share of profits generated from those assets.

• Assets that are rented and provide temporary usage rights.

• Assets that are borrowed and must be returned after use.

• Assets that are leased and require regular payments.

What is real estate?

• Property consisting of land and the buildings on it.

• A type of financial instrument.

• A form of digital currency.

• A type of vehicle insurance.

What are securities?

• Financial instruments that hold some type of monetary value and can be traded in the financial markets.

• A type of insurance policy for personal property.

• A form of currency used in international trade.

• A government-issued identification document.

What is the Securities and Exchange Commission (SEC)?

• The government regulatory agency responsible for policing the U.S. financial markets.

• A private organization that provides financial advice to investors.

• A department of the U.S. Treasury responsible for printing currency.

• An international body that regulates trade agreements.

What is a stock?

• A type of security that represents ownership in a company and a claim on part of the company's assets and earnings.

• A type of bond issued by governments to raise funds.

• A certificate of deposit offered by banks with a fixed interest rate.

• A type of insurance policy for protecting personal property.

Which of the following is NOT an example of an alternative investment?

• Gold

• Bitcoin

• Art

• Bonds

Which type of investment is typically most liquid?

• Bonds
• Real Estate

• Money Market Account

• Mutual Fund