Saving, Investing, & Risk Management

When it comes to personal savings, what does the acronym PYF stand for?

• Prepare Your Future

• Pay Your Friends

• Pay Yourself First

• Prepay Your Finances

A saver who wants her savings insured by the FDIC wants to use this savings option..

• Stocks

• Bonds

• Mutual funds

• Savings account

This type of investment is essentially an IOU with a set rate of return..

• Money market account

• Stock

• Bond

• Certificate of deposit

A long-term investment usually means an investment period of one to three months

• True

• False

Stocks are insured against loss by most banks and credit unions.

• True

• False

By automatically reinvesting dividends, you are buying additional shares and increasing your investment.

• True

• False

Interest is the fee received for the use of money.

• True

• False

The higher the probability that some event will happen, the more expensive the insurance premium to protect against that event will be.

• True

• False

Protection against risk is the primary reason people purchase this type of policy..

• Auto insurance

• Health insurance

• Home insurance

• All of the above