Types of Investments Formative

Front

Which of the following would be the best short term investment with as little risk as possible?
Options:
stock market,
money market fund,
retirement account,
savings account

Back

savings account

Front

Why is investing in a mutual fund rather than stocks less risky?

Back

diversification

Front

What is a disadvantage to using a savings account?

Back

inflation higher than interest rates

Front

What makes a bond different from a stock?

Back

it represents ownership of debt

Front

Certificate of Deposits have higher interest rates than savings accounts

Back

True

Front

Which has the highest risk and return? Options: savings accounts, treasury bonds, index funds, stocks

Back

stocks

Front

Which investment allows an investor to loan money to the government with low risk? Options: stocks, certificate of deposits, mutual funds, treasury bonds

Back

treasury bonds

Front

Higher the risk, Higher the return

Back

true

Front

Which of the following charge penalties for early withdrawal? Savings account, Stocks, Certificate of Deposits, Mutual Funds

Back

Certificate of Deposits

Front

What investment has the lowest potential returns? Options: certificate of deposit, Treasury bonds, money market account, savings account

Back

savings account