Investing Review

Front

A key difference between saving and investing is

Back

Saving is for emergencies & goals, investing is for long-term wealth

Front

Which would be considered the highest risk investment type? Options: Stock, Mutual Fund, Bond, Money Market Account

Back

Stock

Front

The relationship between risk and return can be stated as

Back

Higher risk indicates higher return

Front

If interest rates rise, what will typically happen to bond prices?

Back

Fall

Front

The face value of a bond is called

Back

Par Value

Front

Andy earned $300 on a $1000 investment. What is his current ROI (return on investment)?

Back

30%

Front

A diversified portfolio is desirable because

Back

It decreases risk

Front

Putting regular amounts of money into an investment account at specific time intervals is

Back

Dollar cost averaging

Front

Which is NOT a good reason to buy a stock fund like the S&P 500? Options: Have a diversified portfolio, Have an investment with low fees, Don't have to monitor as closely as an actively managed account, You want to "beat the market" with your ROI

Back

You want to "beat the market" with your ROI

Front

Your money remains tax-deferred in this account until you withdraw (taxed as income)

Back

Traditional IRA