Invesments - Overall Review

The organization that maintains your credit rating is a/an

• bank

• credit bureau

• credit union

• finance company

If you are looking for the best interest rate (APR) for borrowing money, you should go to a/an

• bank

• credit bureau

• credit union

• finance company

A car loan or mortgage payment (house) is an example of a/an

• credit card payment

• installment loan

• revolving credit

• variable expense

A type of savings that is not liquid for a specific length of time (Term) is a/an

• savings account

• money market account

• checking account

• certificate of deposit

A savings account is

• the most liquid option

• the least liquid option

Which of the following would be insured by the FDIC?

• all investments up to $100,000

• savings and investments up to $250,000

• bond investments up to $250,000

• checking, savings, and certificates of deposit (CD) up to $250,000

APY (Annual Percentage Yield) should be compared from various financial institutions when choosing an account.

• True

• False

Dollar cost averaging is

• dividing up your investments into different sectors

• making a montly investment of the same amount into one security (investment)

• taking money out of your retirement fund

• dividing up your investments into different market capitalizations

Risk tolerance is

• the degree of uncertainty you can handle in the ups/downs of your portfolio

• making a montly investment of the same amount into one security (investment)

• the chance of losing all of your investment

• how long it takes to double your investment

Depreciation is

• the decrease in value of an asset (like a house or car)

• the increase in value of an asset (like a house or car)

• a capital gain in the stock market

• a montly investment into your retirement fund