Stocks Bonds and investments

Which of the following types of investments accounts are considered "higher risk"?

• Retirement account

• Mutual funds

• Certificate of Deposit

• Savings account

• Stocks

Complete the statement: "The riskier the investment, the ________________ the return."

When you have money to invest and you are concerned with how safe your investment will be (so that you don't lose money), with which concept are you concerned?

• Return

• Risk

A holder or owner of stock in a company or corporation.

• stock market
• shareholder
• portfolio
• industry

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

What federal organization insures banks?

• FDCI

• FDOC

• FDIC

• FDDC

Which of the following is a way to start investing?

• Purchase stocks on your own

• Pool money into a mutual fund managed by an advisor

• Purchase part of an index fund

• Hire a financial advisor to make a plan for you

• All options are correct

Which would be considered the highest risk investment type?

• Stock

• Mutual Fund

• U.S. Government Bond

• Bank Certificate of Deposit

A single share of ownership of a company is called a:

• Bond

• Mutual Fund

• Annuity

• Stock

Diversification is good because:

• It focuses investments on a single stock to take advantage of growth potential

• Mutual funds have higher fees than individual stocks

• Interest rates rise and fall

• It spreads the risk of investment