Chapter 8: Investing and Retirement

Quality of an asset that permits it to be converted quickly into cash without loss of value.

• Liquidity
• Mutual Fund
• Risk
• Share

A piece of ownership in a company, mutual fund or other investment.

• Bond
• Share
• IRA
• Portfolio

A retirement savings plan offered by a corporation to its employees; the employee contributes money from his/her gross pay, and the money grows tax deferred.

• IRA
• 401(k)
• Share
• Mutual Fund

Account or arrangement in which one would put their money for long-term growth.

• Investment
• Liquidity
• Rate of Return
• Diversification

Degree of uncertainty of return on an asset.

• Risk
• Rule of 72
• Rate of Return
• Share

Pool of money managed by an investment company and invested in multiple companies.

• Stock Market
• Mutual Fund
• Investment
• Money Market Account

A single stock would be a good place to keep your emergency fund.

• Yes
• No

Diversification lowers risk with investing.

• True
• False

Which of the following is a good investment option?

• Gold
• Viaticals
• Futures
• Mutual Funds

Which statement is true about liquidity?

• The less liquid the investment,
  the less the return
• The more liquid an investment,
  the more return
• The more liquid an investment,
  the less return