FP Test Obj 2.4Types of Investments

Lending investments in which individuals lend a minimum amount of money to a bank to earn interest

• Savings Account

• Money Market Account

Lending investments in which individuals lend money to a government, municipality, or corporation to earn a set rate of interest for a specified time period

• Bond

• Securities

Ownership Investments

• Shares or units of ownership in a corporation

• Investments in which individuals purchase a portion or all of an item

Stock

• Shares or units of ownership in a corporation

• Lending investments in which individuals lend a minimum amount of money to a bank to earn interest

Objects or items collected by someone who has an interest in the sport, activity, etc.; in investing, the collector hopes to eventually resell the items at a profit

• Collectibles

• The legal owning or lending agreements between individuals, businesses, or governments

Savings Account

• Shares or units of ownership in a corporation

• Lending investments in which individuals lend money to a bank to earn interest

Lending investments in which individuals lend money to a bank to earn a set rate of interest for a specified period of time

• Certificate of Deposit

• Bond

Lending Investment

• Lending investments in which individuals lend a minimum amount of money to a bank to earn interest

• Investments in which lenders allow borrowers to use their money during a period of time for a specified fee or rate of interest

Ownership investments in which a variety of stocks from different corporations or agencies (usually from different industries) are combined into one investment

• Mutual Fund

• Collectibles

The legal owning or lending agreements between individuals, businesses, or governments

• Mutual Fund

• Securities