Savings & Investment

What is a bond?

• A share of a corporation sold to the public

• A collection of stocks or bonds of various corporations

• An IOU issued by a company, municipality, or the federal government in exchange for a loan from an investor that will be repaid with a set rate of return

• An interest-bearing account where people put money for future use

What does 'pay yourself first' mean?

• The amount of money originally invested

• A fee received or paid for the use of money

• The next best alternative given up when making a financial choice

• To automatically save a specified amount from a paycheck for future use

What is the definition of risk?

• An interest-bearing account where people put money for future use

• To commit money to gain a profit or earn interest

• The possibility of financial loss or physical harm

• A business that provides money-related services

What is a mutual fund?

• An interest-bearing account where people put money for future use

• An IOU issued by a company, municipality, or the federal government in exchange for a loan from an investor that will be repaid with a set rate of return

• A collection of stocks or bonds of various corporations

• A share of a corporation sold to the public

What is the definition of interest?

• A share of a corporation sold to the public

• The possibility of financial loss or physical harm

• The amount of money originally invested

• A fee received or paid for the use of money

What is a stock?

• A type of soup

• A type of bond

• A share of ownership in a company

• An interest-bearing account

What is the role of a financial advisor?

• To provide medical advice

• To provide legal advice

• To provide advice on financial matters

• To provide career advice

What is the purpose of diversification in investing?

• To put all eggs in one basket

• To reduce risk by investing in a variety of assets

• To focus on a single investment

• To avoid investing altogether