Vocab Quiz: Investing

Rate at which the general level of prices for goods and services is rising and the purchasing power is falling is called (a)  

• Saving
• Bond
• Interest
• Inflation

risk management technique which spreads assets into a portfolio with a variety of investments

• Inflation

• Risk

• Diversification

• Compound Interest

portion of ownership in a corporation

• Real Estate

• Bond

• 401K Plan

• Stock

Interest which is calculated on the initial principal as well as the accumulated interest of previous periods is called (a)  

• Compound Interest
• Simple Interest
• Investment Banks
• Inflation

tax-advantaged savings plan designed to encourage saving for future college costs

• Real Estate

• Stock

• Mutual Fund

• Qualified Tuition Plan

A contract between investors and an insurance company in which the company makes periodic payments to the investor is called an (a)  

• Annuity
• Bond
• 401K Plan
• Savings Account

interest computed on the principal, excluding previously earned interest

• Compound Interest

• Compounding

• Simple interest

• Inflation

issued by governments and corporations when they want to raise money

• Risk

• Bonds

• Annuity

• Stock

an asset that can be quickly bought in the market without affecting the asset's price

• High Yield Savings

• Asset

• Simple Interest

• Liquidity

employer-sponsored retirement savings plan

• 401K Plan

• Bond

• Annuity

• Brokerages