Save & Invest Review

Certificates of Deposits, Money Market Accounts and Regular Savings Accounts

• are used for retirement investing.

• are very risky at the top of the investment pyramid

• are FDIC insured

Experts recommend saving and investing at least ___% of your income.

• 5

• 10

• 15

• 20

Interest, rent and dividends are

• Forms of capital gains

• Dividend reinvestment plans

• Income earned from investments

Which savings account would be the most liquid?

• Regular savings account

• Certificate of deposit

• Money Market Account

Dividends are profits earned by

• Savings accounts

• Real estate

• Bonds

• Stocks & Mutual funds

What is the relationship between investment risk & return?

• As risk increases return decreases

• As risk increases return increases

To be adequately funded an emergency fund should have 3-6 months of

• Living expenses

• Gross pay

• Net pay

Interest added to the account balance so it will earn interest also is

• Simple interest

• Compound interest

• Rule of 72

Setting aside money each pay period for saving and investing before paying any other expense is

• Buy & hold

• Asset allocation

• Pay yourself first

Represents ownership in a corporation.

• Bonds

• Savings accounts

• Stocks

• Annuity