Marketplaces- Lesson 4 and 5

When would it be a good idea to put your money in a savings account instead of investing it?

• When you won’t need the money for a long time.

• When you’re looking for a large return.

• When you’re looking to maintain the value of your money with a little bit of growth.

• None of the above

Why might an investor want to invest in the stock market?

• Investing in the stock market is a guaranteed way to make money.

• Investing in companies through the stock market offers a chance to share in their profits.

• Investing in the stock market usually offers a higher return than interest earned on a savings account.

A ______ is a fixed income investment that represents a loan from an investor to a borrower.

• Stock

• Bond

• Cash Equivalent

• Mutual Fund

A _____ is a short-term investment that is considered highly liquid.

• Stock

• Bond

• Cash Equivalent

• Mutual Fund

A _____ is a share of ownership in a company.

• Stock

• Bond

• Cash Equivalent

• Mutual Fund

Involves dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash.

• Time Horizon

• Asset Allocation

• Risk Tolerance

• Bond Reparation

Which of the following is NOT a consideration when determining your asset allocation?

• Time horizon

• Personal financial health

• Risk tolerance

• Portfolio diversification

How comfortable you feel taking the risk of losing your money refers to:

• Time horizon

• Asset allocation

• Personal financial health

• Risk tolerance

How long you plan to keep your investments in your portfolio refers to:

• Time horizon

• Asset allocation

• Personal financial health

• Risk tolerance

What is diversification?

• An investment strategy that mixes a wide variety of investments from different categories within a portfolio.

• How comfortable you feel taking the risk of losing your money.

• An investment strategy used to analyze company stocks based on their financial statements.

• How long you plan to keep your investments in your portfolio.