Saving and Investing

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

A corporation whose ownership is dispersed among the general public in many shares of stock which are freely traded on a stock exchange or in over the counter markets is considered

• Privately held
• Publicly held
• Stocked up
• A stock exchange

When you take out a mortgage, what are you putting up as collateral

• Your principal
• Your interest
• Your house
• Your down payment

Your credit score will be significantly lowered if you

• You miss a loan payment
• Buy a house
• Take out a loan
• Go to college

A house cost 500,000. You put 100,000 down and borrow 400,000 at a 30 year 4% fixed interest rate. Which is your principal?

• 600,000
• 500,000
• 400,000
• 100,000

Your house cost 100,000. You put 20% down. What is your down payment? 

• 10,000
• 20,000
• 100,000
• 120,000

A pool of money collected from many investors, and used to buy stocks, bonds, and other securities.

• stock

• mutual fund

• bond

• goals

Much less risky

• saving

• investing