Saving and Investment Vocab Assessment

A measure of how quickly an asset can be turned into cash

• diversification

• liquidity

• market timing

An investment that is not subject to taxation

• tax deferral

• inflation risk

• taxation risk

• tax-exempt

A debt instrument issued by a corporation or government

• portfolio

• stock

• bond

• estate

Buying and selling stocks based on what the market is expected to do

• retirement

• financial security

• market timing

• diversification

Unplanned or possible events

• contingencies

• bear markets

• foundations

• emergency funds

The chance that factors affecting an industry as a whole will affect the value of an investment

• tax deferral

• industry risk

• inflation risk

• tax-exempt

Short-term goals are those you want to accomplish in the next two to five years.

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A systematic saving and investing plan is designed for growth in the long run, not for short-term results.

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You should start planning for retirement when you begin your first career.

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Tax deferral allows your investment to grow for years without being taxed.

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