ch 8 Savings & Investing

Which of the following items is MOST liquid?

• real estate

• savings account

• Bond

• 401K

What retirement account is through your non-profit employer?

• 401K

• 403B

• IRA

• Roth IRA

Type of savings plan where you deposit money at a bank for a set period of time

• mutual fund

• CD

• regular savings

• stock

Money saved in this type of account is money on which you have already paid taxes.

• 401K

• 403B

• IRA

• Roth IRA

Which has no voting rights

• common shareholders

• preferred shareholders

Diversification offers all of the following benefits, EXCEPT

• Guarantees a positive return on your investments

• Spreads your risk over many investments

• reduces your risk

• increases your opportunity for return

Corps and governments can sell these and must be repaid at maturity date

• mutual funds

• bonds

• stock

• IRA

Pools money of many investors and buys a large selection of investments.

• mutual funds

• bonds

• stock

• IRA

Person or firm that charges a fee or commission for executing buy and sell orders submitted by an investor.

• financial adviser

• broker

• principal

Contract that provides the investor with a series of regular payments from life insurance companies, usually after retirement

• bond

• stocks

• mutual fund

• annuities