CHP11 Intro

What can you do with your money?

• Owe it

• Grow it

• Live with it

• Give with it

Income not used for consumption. . .

• an investment

• savings

• CDs

• loans

When you use the income of today to allow you to benefit in the future (put away now, reward later). . .

• loans

• savings

• investment

• credit card

Where buyers and sellers exchange financial assets directly. . .

• financial markets

• Zoos

• schools

• government buildings

When you borrow money from a bank to pay for something, you are taking out a:

These people assist with investing, planning retirement, making loans, and mutual funds. . .

• banks

• the principal

• cops

• financial companies / financial advisors

The following are all examples of financial assets:

• stocks

• bonds

• savings bonds

• mutual funds

When you invest, you should be sure NOT to put all of your eggs in one. . .

• basketball hoop

• basket

• backpack

• suitcase

This type of investment has the greatest risk, but can provide the highest return. . .

• savings account

• CDs

• stocks

• government bonds

Loss aversion is when the pain of losing is psychologically TWICE as powerful as the pleasure of . . .

• losing

• sleep

• money making

• gaining