Ch12 L1

What makes an asset a "liquid" asset.

• It is valued using gold.

• It is an asset that can easily be sold into cash.

• It is an asset that is based in real estate.

• It is an asset based in stocks/mutual funds.

Comparing ____ to _____ makes up your Risk-Return ratio. (Select both that apply)

• Money you expect to make.

• Amount of interest.

• The odds that you'll lose money.

• Fees.

• Interest percentage.

Measuring the amount of money you made on an investment is also referred to as your...

• Monetary Yield

• Monetary Liquidation

• Return on Investment

• Asset Evaluation

Which of these items is the MOST liquid asset?

• A house

• Cash

• A car

• Trading Cards

Which of these items is the LEAST liquid asset?

• A house

• Cash

• A car

• Trading Cards

When saving for retirement, it is recommended that you set aside ___% of your paycheck at least.

• 5

• 10

• 15

• 25

The profit you earn on an investment, usually in the form of a percentage, is called the...

• Rate of Return

• Annual Yield

• Diversification

• Annuity

T or F: Retirement plans are provided by your employer, it is not something that you do yourself.

• True

• False