Front

What is true about risk and return?

Back

If you take on more risk, an investor should expect a higher rate of return.

Front

A collection of stocks/bonds/bank investments purchased as a package is called

Back

Mutual Fund

Front

Investment values where an investor lends money to a company or government for a specified period of time in exchange for regular interest payments.

Back

Bonds

Front

Spreading out your investments into multiple different investments types to limit your risk exposure is known as which of the following: Liquidity, Rule of 72, Diversification, Index funds?

Back

Diversification

Front

Being able to convert an investment to cash quickly is known as which of the following?

Back

Liquidity

Front

The risk that your purchasing power will be reduced if the value of your investments does not keep pace with inflation.

Back

Inflation risk

Front

Stocks are riskier than bonds

Back

True

Front

You should invest as soon as you can because....

Back

It allows compound interest to work for you for a longer period of time

Front

the interest earned becomes part of the principal and then earns interest on itself

Back

compound interest

Front

The amount of money an investment earns

Back

rate of return