Investing

A key difference between saving and investing is

• Saving is for everyone, investing is for the wealthy

• Your money is insured when investing, it is not in savings

• Investing has a guaranteed return, savings does not

• Saving is for emergencies & goals, investing is for long-term wealth

Why is compound interest more beneficial than simple interest? (hint: choose 2 correct answers)

• Your money grows faster when it is compounded

• You earn interest on your interest

• Fees for compound interest are greater than simple interest

• Compound interest is hard to calculate, so fewer use it

A diversified portfolio is desirable because

• It limits investment choice

• It's a good predictor on rate of return

• It increases risk and return

• It decreases risk

What is inflation?

• The general rise in prices
• The uncertainty the return on an investment will deviate from what is expected
• The number of times something happens to money
• The projected value of an ivestment at the end of a specified time frame

What is a stock?

• A loan an investor makes to a company or government that pays interest over time.
• A share of ownership in a company
• A collection of investments sold as a package.
• An option to purchase something in the future at todays price.

Which of the following statements best explains the purpose behind diversifying your portfolio.

• All's well that ends well
• Don't put all your eggs in one basket
• Everything in moderation.
• Just do it.

Employer sponsored retirement savings plan.

• 401K
• IRA
• Individual Retirement Account
• Roth IRA

Savings accounts have _______  interest rates.

• Low
• High

Interest upon interest is called

• A good deal

• Compound Interest

• Principle

• A double standard

Choose the 3 choices for savings plans ?

• Savings Account

• Certificate of Deposit

• Money Market Account

• Credit Card