Which of the following accurately describes a difference between an individual bond compared to a bond fund? Options: A bond pays you dividends while a bond fund pays you regular interest, A bond guarantees you a higher rate of return than a bond fund, A bond is issued by a company while bond funds only invest in government bonds, A bond is considered to be a less diversified investment than a bond fund
Investing Review (short)

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Social Studies
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9th - 12th Grade
•
Hard
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1.
FLASHCARD QUESTION
Front
Back
A bond is considered to be a less diversified investment than a bond fund
2.
FLASHCARD QUESTION
Front
Why is diversification a recommended investment strategy?
Back
Diversifying your portfolio helps reduce risk
3.
FLASHCARD QUESTION
Front
An actively managed mutual fund…
Back
Generally has higher fees than an index fund
4.
FLASHCARD QUESTION
Front
Investing in cryptocurrency is generally seen as being _____ risky than traditional investments like bonds and funds.
Back
More
5.
FLASHCARD QUESTION
Front
This is a type of investment you can purchase that represents ownership of a part of a corporation. Units of this are called "shares."
Back
Stock
6.
FLASHCARD QUESTION
Front
This is a type of investment you can purchase that represents part ownership of a corporation, and you get regular interest payments while you own it. Units of this are called "shares."
Back
Dividend Stock
7.
FLASHCARD QUESTION
Front
This is a type of investment that acts like an IOU. For example, you pay $1000 to buy one, you get $50 a year (like a dividend) until it reaches maturity (agreed upon length of borrowing time), then get your $1000 back.
Back
Bond
8.
FLASHCARD QUESTION
Front
A type of investment consisting of a bundle of stocks, bonds, or other securities. The investment is already diversified.
Back
Index Fund, Mutual Fund, Exchange Traded Fund (ETF)
9.
FLASHCARD QUESTION
Front
Which is mainly used for short term goals, saving or investing?
Back
Saving
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