W!SE Test Prep INVESTING FLASHCARD (Part 1)

Flashcard
•
Financial Education
•
11th Grade
•
Hard
Wayground Content
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10 questions
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1.
FLASHCARD QUESTION
Front
What is the primary goal of investing?
Back
To get your money working for you
2.
FLASHCARD QUESTION
Front
Which of the following is NOT a way to make money through investing? Earning interest, Receiving dividends, Capital gains, Winning the lottery
Back
Winning the lottery
3.
FLASHCARD QUESTION
Front
What does ROI stand for?
Back
Return On Investment
4.
FLASHCARD QUESTION
Front
What is compound interest?
Back
Interest earned on both the original investment and previous interest
5.
FLASHCARD QUESTION
Front
How does the frequency of compounding affect the growth of an investment?
Back
Increases growth
6.
FLASHCARD QUESTION
Front
What is the Rule of 72 used for?
Back
Determining how long it takes for an investment to double
7.
FLASHCARD QUESTION
Front
What does liquidity refer to in terms of savings and investments?
Back
The ability to convert to cash quickly
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