PFL & Eco Final Exam Review Part #2

A type of fund where components of the fund track the performance of a financial market index

• Mutual Fund

• Index Fund

The possibility of loss or injury

• Risk

• Return

The profit or loss from an investment

• Risk

• Return

The possibility that an asset will fail to produce a return or will lose value over time

• Financial Risk

• Default Risk

• Capital-loss Risk

• Inflation Risk

• Liquidity Risk

When the borrower fails to make full and timely payments

• Financial Risk

• Default Risk

• Capital-loss Risk

• Inflation Risk

• Liquidity Risk

The loss of part or all of an investment

• Financial Risk

• Default Risk

• Capital-loss Risk

• Inflation Risk

• Liquidity Risk

When the rate of return is less than the rate of inflation

• Financial Risk

• Default Risk

• Capital-loss Risk

• Inflation Risk

• Liquidity Risk

When an investment cannot be sold quickly at an acceptable price

• Financial Risk

• Default Risk

• Capital-loss Risk

• Inflation Risk

• Liquidity Risk

True or False:

When Estate planning, it is extremely important to leave your family a valid will before you pass away. 

• True

• False

What are the two types of goals?

• Personal and Financial

• Personal and Business

• Personal and Impersonal

• Personal and Optional