Personal Finance Chapter 8 Test Review

Front

A list of all your investments

Back

Portfolio

Front

Quality of an asset that permits it to be converted quickly to cash without loss of value

Back

Liquidity

Front

A piece of ownership in a company, mutual fund, or other investment

Back

Share

Front

A retirement savings plan offered by a corporation to its employees; the employee contributes money from his/her gross pay, and the money is tax deferred

Back

401(K)

Front

Account or arrangement in which one would put their money for long-term growth

Back

Investment

Front

Degree of uncertainty of return on an asset

Back

Risk

Front

Pool of money managed by an investment company and invested in multiple companies

Back

Mutual Fund

Front

Tax-deferred arrangement for individuals with earned income; individual retirement arrangement

Back

IRA

Front

Single stocks are good places to keep an emergency fund

Back

False

Front

Diversification lowers what?

Back

Risk