Saving, Investing, Risk Management Review

Protection against risk is the primary reason people purchase this type of policy.

• Auto Insurance

• Health Insurance

• Home Insurance

• All of these

A saver who wants her savings insured by the FDIC (Federal Deposit Insurance Corporation) wants to use this savings option.

• Stocks

• Bonds

• Mutual Funds

• Savings Account

This type of investment is essentially an IOU with a set rate of return. The issuer promises to pay the buyer a certain sum of money at the end of a stated period plus interest payments at specific intervals. This type of investing doesn’t represent ownership in the corporation, government agency, or utility borrowing the money.

• Stock

• Bond

• Certificate of Deposit

• Money Market Account

When it comes to personal savings, what does the acronym PYF stand for?

• Pay Your Friends

• Prepay Your Finances

• Pay Yourself First

• Prepare Your Future

Interest is the fee received for the use of money.

• True

• False

Stocks are insured against loss by most banks and credit unions.

• True

• False

The higher the probability that some event will happen, the more expensive the insurance premium to protect against that event will be.

• True

• False

A long-term investment usually means an investment period of one to three months.

• True

• False

By automatically reinvesting dividends, you are buying additional shares and increasing your investment.

• True

• False

This is a short-term savings option. Choose all that apply.

• Savings Account

• Money Market Account

• Mutual Fund

• Certificate of Deposit