Final Exam Review Investments

Front

Diversification is important in investing because...

Back

It helps you to balance your risk across different types of investments.

Front

Which investment is the most risky? Options: bond, stock, mutual fund, savings account

Back

stock

Front

Liam, Scarlett, and Anika are discussing investment options for their college fund. Which type of investment is the least risky?

Back

savings account

Front

How can the relationship between Risk & Return be described in the context of investing in stocks and bonds?

Back

Higher Risk / Higher Return

Front

Which of the following correctly orders the investments from LOWER risk to HIGHER risk? Treasury bond − Stock − Diversified mutual fund, Stock − Treasury bond − Diversified mutual fund, Treasury bond − Diversified mutual fund – Stock, Diversified mutual fund − Treasury bond − Stock

Back

Treasury bond − Diversified mutual fund – Stock

Front

Scarlett is evaluating her employment benefits at a large corporation. Which retirement plan is typically offered by a corporation to its employees like Scarlett?

Back

401K

Front

Investment in which investor loans money to an entity, when an individual loans money to the government in exchange for interest (has a maturity date)

Back

Bond

Front

What is a stock?

Back

A stock is a share of ownership in a company.

Front

To earn as much interest as possible, you should open a savings account that earns ______ interest and has the _____ interest rate.

Back

compound ; highest

Front

What is the definition of dividend?

Back

A portion of a company's earnings paid back to shareholders.

Tags

EPF.IE.1.5