Investment Management- Unit 1

Which type of bond is issued by the U.S. government and is considered one of the safest investments due to its full faith and credit backing?

• Corporate bond

• Municipal bond

• Treasury bond

• Junk bond

What term describes the strategy of spreading investments among different types of assets or asset classes to reduce risk?

• Asset allocation

• Portfolio diversification

• Risk management

• Capital preservation

What is the term for a diversified portfolio of stocks and bonds that is managed by professionals on behalf of investors?

• Mutual Fund

• ETF (Exchange-Traded-Fund)

• Certificate of Deposit (CD)

• Hedge Fund

Liquidity means_________

• How quickly you will get cash

• How quickly you can convert into Cash

• How quickly you can market

• How well you will get returns

Investment is the ____.

• Net addition made to the nation’s capital stock

• Person’s commitment to buy a flat

• Employment funds on assets to earn return.

• Employment of funds on goods and services that are used in production process.

Once you have built up an emergency fund you should

• Try to increase it
• Start to invest
• Spend some of it

What is investing?

• —Purchase of assets with the goal of increasing future income
• —Focuses on wealth accumulation
• —Appropriate for long-term goals
• All of the above

Savings account, money- market account, CD: Products to help

• Save
• Invest

Stocks, bonds, mutual funds: Products to help us 

• Save
• Invest

Short-term needs

• Save
• Invest