Banking, Savings and Investing

When investing, which is typically correct?

• Greater Risk, Greater Return
• None of the Above
• Greater Risk, Less Return
• Lower Risk, More Return

What word fits the following definition best? A plan for spending and saving, based on one's income and estimated expenses.

• Social Security
• Liquidity
• Budget
• Company Retirement

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 and retirement

Which would be considered the highest risk investment type?

• Stock

• Mutual Fund

• Bond

• Money Market Account

An account that pays interest on a specific sum of money that a person has deposited for a specific period of time, like from 7 days to 60 months. If withdrawn before that time,the bank imposes a penalty fee, and you will not receive the interest.

• Savings Account

• Certificate of Deposit (CD)

• Checking Account

• Money Market Account

A type of bank account where the bank invests the money in government and corporate securities in order to pay a higher interest rate than a regular savings account. You typically have to have a large minimum balance in order ($1,000 to $2,000) to have such an account.

• Savings Account

• Money market account

• Checking Account

• CD

Risky investments

• Are meant to make small returns on investment
• May lead to a larger return on investment
• Are always long-term
• Involve checking accounts

A mutual fund is 

• An investment in a diversified group of stocks
• The money left over when reinvested into the company
• An account that guarantees a fixed rate of return
• Exclusively for retirement accounts

Which is the least risky?

• Stock
• CD
• Savings account
• Mutual fund

Don't put all your eggs in one basket best refers to which of the following pieces of advice

• Diversify your stock portfolio in order to reduce risk
• Invest in a single stock for the largest gain
• Take out as many loans as you can
• Don't hesitate when buying stocks