Final Review

Bonds are a form of investment that you

• Own

• Lend

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

Deposit is usually not insured

• savings

• investing

Provides fixed interest payments for a set period of time

• money

• stock

• bond

• mutual fund

All are benefits of saving, except

• safe, reliable, convenient

• earns a higher return of interest

• earns a small amount of interest

• insured by the FDIC

Bonds are a safer investment than stocks

• True

• False

A sum of money paid to shareholders (stockowners) of a corporation out of its earnings.

• index

• dividend

• profit

• bitcoin

The possibility of losing all or part of your investment is known as

• asset allocation

• compounding

• return

• risk

Generally, how is risk related to return?

• the lower the risk, the greater the possibility of a high return

• the greater the risk, the greater the possibility of a high return

• the greater the risk, the greater the possibility of a low return

• risk and return have no relationship