EPF Unit 6 review

Front

What is the benefit of investing your money vs putting it in a savings account?

Back

Higher potential returns

Front

What is the risk of investing your money vs a savings account?

Back

Higher risk of loss

Front

What happens if your portfolio is too risky?

Back

You may give up due to taking losses.

Front

What is a benefit of investing in a mutual fund?

Back

Professional management

Front

ownership in a company

Back

Stocks

Front

IOUs from a business or the Government

Back

Bonds

Front

one con in investing in stocks

Back

Market volatility can lead to financial loss.

Front

one pro of investing in bonds

Back

Stable income through regular interest payments.

Front

one con of leaving money in a savings account

Back

Low interest rates may not keep up with inflation.

Front

What is compound interest?

Back

interest on both the initial deposit and the accumulated interest from previous periods.