Investments FHS 2022

Where should you keep your emergency fund?

• In an interest-bearing bank account

• A single stock

• Money Market Account

• 401k

Which is true about risk and return?

• More risk = less possibility to make moeny

• Less Risk = More possibility to make money

• More Risk = more possibility to make money

• Risk and return are calculated with the rule of 72

Rule of 72 is the rule that...

• Calculates how much your company is matching for your retirement plan

• Calculates how much time it will take to double your money

• The IRS uses to calculate interest rates on bonds

• Decides which mutual funds are worth investing in

A collection of stock bought as a package deal is called a

• Bond

• Stock

• Mutual Fund

• 401k

A price-weighted index that tracks 30 large, publicly owned, companies trading on the New York Stock exchange and Nasdaq.

• Dow Jones Industrial Index

• Rob McNash Industrial Index

• The Biden Mutual Fund

• The Smith P. Daniel Mutual Fund

Investment securities where an investor lends money to a company or government for a set period of time in exchange for regular interest payments.

• Stocks

• Roth IRA

• Mutual Funds

• Bonds

The process of spreading your investments around so that your exposure to any one asset is limited.

• Liquidity

• Rule of 72

• Diversification

• Index Funding

A broker that buys and sells securities on the stock exchange on behalf of clients.

• Stockholder

• Stockbroker

• Stockowner

• Stockbuilder

The ease to which an asset or security can be converted into ready cash without effecting it’s market price.

• Liquidity

• Diversification

• Collectability

• Compound Intrest

Items that are worth far more than their than their original sale price and are considered alternative investments.

• Stocks

• Loans

• Bonds

• Collectables