Unit4 Investing Review

A key difference between saving and investing is

• Saving is for everyone, investing is for the wealthy

• Your money is insured when investing, it is not in savings

• Investing has a guaranteed return, savings does not

• Saving is for emergencies & goals, investing is for long-term wealth

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

Earnings on stocks are called

• Interest

• IPO

• Growth stocks

• Dividends

A dividend is a distribution of a portion of a company's earnings

• True
• False

What is a mutual Fund?

• A loan an investor makes to a company or government that pays interest over time.
• A share of ownership in local government.
• A collection of investments sold as a package.
• An option to purchase something in the future at todays price.

Why is compound interest more beneficial than simple interest?

• Your money grows slowly when it is compounded

• You earn interest on your interest

• Fees for compound interest are greater than simple interest

• Compound interest is hard to calculate, so fewer use it

What is a stock?

• A loan an investor makes to a company or government that pays interest over time.
• A share of ownership in a company
• A collection of investments sold as a package.
• An option to purchase something in the future at todays price.

An organized market where stocks and bonds are traded is called

• a company

• an exchange

• an index

• farmers

Which would be considered the highest risk investment type?

• Stock

• Mutual Fund

• Bond

• Money Market Account

The relationship between risk and return can be stated as

• Higher risk indicates higher return

• Higher risk indicates lower return

• Lower risk indicates higher return

• No relationship exists between risk and return

What is one way you can make money on stocks?

• Using a stock broker to help with advice and purchase of shares

• Earning Interest on the stocks you purchased

• Receiving Dividends the company might pay out

• Marking the stock as a favorite and following it on your app