Ch12 L2

Identify the investment below that is considered exclusively high-risk.

• Stocks

• Real Estate

• Annuities

• Bonds

• Money Market Accounts

​ (a)   reflect overall decreases in stock value, whereas ​ (b)   reflect overall increases in stock value.

• Bear Markets
• Bull Markets

Match the following investments to the correct description.

• Loaning money to a company with interest.

• Annuity

• Loaning money to insurance companies with interest.

• Stock

• Buying ownership in a single company.

• Bond

• Buying properties, both commercial and residential.

• Mutual Fund

• Buying a collection of stocks/bonds/etc.

• Real Estate

Certificates of deposit and money market accounts are considered ​ (a)   risk and ​ (b)   reward investments.

• Low
• High

Sony, Apple, and Microsoft would be examples of...

• Stocks

• Mutual Funds

• Money Market Accounts

• CD's

Money market accounts are essentially...

• Money pooled to buy low-end stocks.

• Money pooled to buy low-end real estate.

• Loans to major corporations that earn interest.

• Savings accounts that earn interest on deposits.

Bonds are essentially...

• Money pooled to buy low-end stocks.

• Money pooled to buy low-end real estate.

• Loans to major corporations that earn interest.

• Savings accounts that earn interest on deposits.

Investments that earn you a variable interest rate means...

• The interest rate can increase or decrease over time.

• The profit on your investment is not guaranteed.

• The interest rate can not be adjusted over the loan term.

The date at which repayment for your investment comes due is called...

• The Maturity Date

• The Annual Premium Date

• The Periodic Payment Date

• The Evaluation Date

If Mr L deposits money in a CD that will earn him 15% interest over the course of 10 years, then his investment's term would be...

• The CD

• The 15% Interest

• The 10 Years