Investing & TVM

What is the difference between saving and investing?

• There is no difference

• Investing is spending money on certain tools that can make your money grow

• Investing requires some spending at first

• Saving is the only way to receive compound interest

Which graph displays compound interest?

• 
• 

Time Value of Money refers to the concept that money grows over time. There is a present value of money, and a future value of money. The future value of money will be greater.

• True

• False

Based on the above, which is more risky? Investing in stocks or bonds?

• Stocks

• Bonds

When talking about stocks, what does it mean to diversify your stocks?

• Choose one company to invest all of your money in.

• Choose stocks at random.

• “Don’t put all your eggs in one basket.” You should choose different company stocks to invest in.

What is the difference between a mutual fund and an index fund?

• Mutual funds are agreed to by everybody.

• Index funds follow an "index" - a specific set of stocks, while mutual funds invest in a changing list of stocks, chosen by an investment manager.

• Index funds follow the orbit of the planet.

Choose any retirement plans that you've heard of before.

• ROTH IRA

• Traditional IRA

• Pokemon IRA

• My Hero Academia IRA

• 401K

What is blockchain?

• Buying/selling of cryptocurrency.

• Transactions are recorded in “blocks” that are then linked together.

• Transactions are recorded in code.