Investment and Financial Concepts

Front

What does dollar cost averaging encourage investors to do?

Back

Invest the same amount consistently over time.

Front

What makes municipal bonds appealing to investors?

Back

Earnings are tax-free.

Front

Which of the following does NOT describe why a savings bond is appealing to an investor?

Back

It pays regular interest payments called coupons throughout its life.

Front

When you invest in a company and it goes bankrupt, this is an example of:

Back

Risk

Front

Investments are typically best for:

Back

Building long-term wealth

Front

What does the Rule of 72 help you calculate?

Back

The time it takes for your money to double.

Front

I am passively managed and usually come with lower fees.

Back

Index Fund

Front

What is the chief reason corporations issue stock?

Back

To raise money for the corporation

Front

Which financial product usually pays the highest rate of interest?

Back

Certificate of Deposit

Front

Which type of investment is guaranteed by the federal government?

Back

U.S. Treasury Notes