Saving Vs. Investing

T/F: You can lose money on investments.

• True

• False

______ means you can get your money when you need it.

• Liquidity

• Risk

Which of the following are true about savings? Select all that apply.

• Typically needs to be accessible easily and quickly

• Has a higher return with a higher risk

• Act of putting away money for a future expense or need.

• Can be for short term and long term goals

Much less risky

• saving

• investing

Which is the least risky?

• Stock
• CD
• Savings account
• Mutual fund

Your credit score will be significantly lowered if you

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

The higher the risk the, _______ the reward

• Higher
• Lower
• There is no relationship between risk and reward
• All of the above

The lower the risk, the ______ the reward

• Higher
• Lower
• There is no relationship between risk and reward
• All of the above

When you diversify your investments it means you

• You put your money in one place
• You give all your money away
• You don’t save any money
• You put your money into many different types of investments

Which is NOT a typical goal for a savings account?

• To create an emergency fund
• To pay for higher education
• To save for a new car
• To buy groceries for this week