Unit 2 PFL Review (fall 2024)

Money that is set aside for unplanned events is a ____________.

• Emergency fund

• Savings account

• Investment portfolio

• Retirement fund

You are lending money to the federal government when you purchase a ____________.

• U.S. savings bond

• corporate bond

• municipal bond

• certificate of deposit

Amount of uncertainty a person is willing to handle.

• Risk tolerance

• Proxy

• Securities

• Dollar-cost averaging

A collection of the investments a person has made.

• Mutual bond

• Yield

• Investment portfolio

• Rate of return

A short-term financial instrument that is issued by the U.S. Treasury with maturity periods ranging from a few days up to 52 weeks (one year).

• Stock option

• Mutual bond

• Treasury Promissory Note

• Treasury Bill

Investment securities where an investor lends money to a company or a government for a set period, in exchange for regular interest payments.

• Stock

• Bond

• Mutual fund

• Exchange Traded Fund (ETF)

A security that represents a fractional ownership in a company.

• Stock

• Bond

• Treasury Bill

• Derivatives

The profit from selling an asset such as a stock or other financial instrument, an interest in a business, or real estate.

• Interest

• Bullish gain

• Capital tax

• Capital gain

What type of investment will let you pool your money with other investors so that a professional money manager(s) can buy stocks, bonds, and other investments? This type of investment is considered “diversified.”

• Stock option

• Mutual bond

• Mutual fund

• Pooled fund

An investment strategy whereby an investor buys financial assets or non-financial assets such as real estate, to hold them long term, with the goal of realizing price appreciation, despite volatility.

• Buy-and-hold

• Dollar-cost-averaging

• Transactional strategy

• Dividend reinvestment plan (DRIP)