Unit 4 Money Management

An example of an equity investment could be

• A loan

• A company bond

• A government bond

• A company's stock

The best way to focus when you have many competing financial goals is to

• get more unearned income

• prioritize and make a budget

• open a checking account

• Diversify your investments

Most likely outcome if the Federal Reserve prints to much currency would be

• An increase in inflation

• A decrease in product prices

• An increase in spending power

• A decrease in the number of banks

The type of calculation needed in order to compare two different investments

• The capital gain

• The compound interest

• The ROI dollar amounts

• The ROI percentages

The term when you take money out of the bank

• withdrawal

• deposit

• Transfer

• loan

Best way to deal with volatility and get the best return on your investment is to

• Avoid investments that create capital gains

• Put your money in a savings account

• Use diversification

• Invest only in very safe investment

An example of an earned income is

• a paycheck you receive for work you have done

• interest on money you lent to a friend

• a gift of money from a friend or family member

• Money you receive from a company you invested in

The type of bank account to use when making frequent withdraws

• Savings

• Checking

• Roth IRA

• Investment portfolio

Purpose of the FDIC

• To not lend out money

• Best exchange rate

• Print currency when needed

• Your money is insured up to a specific amount

If you want to take advantage of compound interest, what should you do when an investment produces interest?

• Reinvest the interest

• Reroute to checking

• Use the interest to pay your bills

• Reroute to savings