Savings & Investing Review

What is the purpose of a company issuing stock?

• To grow equity interests that encourage diversification

• To raise money that can be used to grow the company.

• To increase the influence of the current owner of the company.

• To exempt the company from paying taxes.

This formula represents what: (Principal + Earned Interest) x Interest Rate x Time = Amount Earned

• Compound Interest

• Simple Interest

• Interest Rate

• Complex Interest

This formula represents what: I = P x R x T 

• Compound Interest

• Simple Interest

• Interest Rate

• Complex Rate

You can insure your deposits up to how much money?

• $100,000

• $200,000

• $250,000

• Full Amount

What is improving what you already have by putting your money to work.

• Saving

• Investing

• Risk

• Diversification

This yields a percentage of the investment that you earn each year from your invested money

• Rate of Return

• Liquidity

• Risk

• Diversificiation

This is the ease or quickness with which you can change your investment into cash.

• Rate of Return

• Liquidity

• Risk

• Diversification

This is the possible loss you face if your investment fails

• Rate of Return

• Liquidity

• Risk

• Diversification

This reduces your investment by spreading your money among several different investments.

• Rate of Return

• Liquidity

• Risk

• Diversification

What is the mathematical formula used to figure out how to double your money.

• Compound Interest

• Rule of 72

• Simple Interest

• There is no formaula