Saving and Investing Unit Review -EL

The practice of accumulating money for future use. A primary objective is often safety of the principal.

• Saving

• Investing

• Risk

• Dividend

The practice of committing money in order to gain a profit or earn interest. A primary objective is often growth of the principal.

• Saving

• Investing

• Risk

• Dividend

An interest-bearing account where people put money for future use.

• Savings Account

• Certificate of Deposit

• Money Market Savings Account

• Bond

A savings certificate with a fixed interest rate and maturity date, holding the saver's money until the CD fully matures.

• Savings Account

• Certificate of Deposit

• Money Market Savings Account

• Bond

The amount you earn as the benefit of depositing money in an interest-bearing account.

• Interest

• Principal

• Dividend

• Risk

Original amount of money saved or invested, separate from interest or earnings.

• Interest

• Principal

• Dividend

• Risk

The possibility of financial loss.

• Interest

• Principal

• Dividend

• Risk

A portion of a company's profits distributed to stockholders based upon the number of shares owned

• Interest

• Principal

• Dividend

• Risk

An IOU issued by a company, municipality, or the federal government in exchange for a loan from an investor.

• Bond

• Stock

• Mutual Fund

• Certificate of Deposit

An investment that holds a wide range of different types of investment instruments and providing diversification.

• Bond

• Stock

• Mutual Fund

• Certificate of Deposit