Investing

Front

A key difference between saving and investing is

Back

Saving is for emergencies & goals, investing is for long-term wealth

Front

Why is compound interest more beneficial than simple interest?

Back

Your money grows faster when it is compounded

Front

Which would be considered the highest risk investment type? Options: Stock, Mutual Fund, Bond, Money Market Account

Back

Stock

Front

The relationship between risk and return can be stated as

Back

Higher risk indicates higher return

Front

Which is an example of a stock market index? Options: New York Stock Exchange, Mutual Fund, S&P 500, Roth IRA

Back

S&P 500

Front

How can you make money on stocks? Options: Sell the stock for a lower price than you bought it., Interest, Dividends, Holding the stock at least 3 years

Back

Dividends

Front

What is one advantage of starting to invest as early as possible?

Back

Your money has more time to grow.

Front

A savings account is useful for all of the following purposes EXCEPT: Building an emergency fund, Funding a future vacation, Saving for a new car

Back

Putting aside money for retirement

Front

Which of the following is TRUE about owning a share of stock? Options: the value of a share is based on the number of investors in a company, Companies lose money every time someone buys a share, Owning a share means you own a percentage of the company, You have to return the share after 5 years or pay a penalty

Back

Owning a share means you own a percentage of the company

Front

Which statement is true about bonds? Options: The company that issued the bond will pay a dividend to the bondholder each year, Bonds are a high risk investment, Bonds are a loan to a company in exchange for an interest payment each year, Bonds represent part ownership in a company

Back

Bonds are a loan to a company in exchange for an interest payment each year