Ch.7 Savings and Investing

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

• mutual fund

• CD

• regular savings

• stock

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

The spreading of risk among many types of investments

• dividends

• investing

• liquidity

• diversification

Results from an asset increasing in value between purchase and sale

• dividend

• index

• capital gains

• liquidity

Dividends are a characteristic of what investment tool?

• Mutual Funds 
• Stocks 
• Bonds
• Real Estate

Has a higher interest rate than a savings account but has a limited number of withdraws each month

• Money Market account
• Savings account
• Certificate of Deposit

The FDIC protects deposits in most commercial and savings banks.

• True
• False

In this type of market, investors are optimistic about investing and tend to start buying stocks.

• Bull

• Bear

• Dog

• Cat