Saving & Investing Review

Front

A key difference between saving and investing is

Back

Saving is for emergencies & goals, investing is for long-term wealth

Front

Why is compound interest more beneficial than simple interest?

Back

Your money grows faster when it is compounded

Front

Which would be considered the highest risk investment type? Options: Stock, Mutual Fund, Bond, Money Market Account

Back

Stock

Front

The relationship between risk and return can be stated as

Back

Higher risk indicates higher return

Front

If Jonathan is earning 2% on an investment and inflation is increasing by 3%, what is happening to his purchasing power?

Back

It's decreasing

Front

A _____ is a loan given to an organization while a _______ is partial ownership in the company.

Back

bond, stock

Front

Andy bought 5 shares of a company for $10. Later, he sold all 5 shares for $15. What was his profit/loss on the stock?

Back

Profit of $25

Front

A diversified portfolio is desirable because

Back

It decreases risk

Front

What is Social Security?

Back

Social Security is a government run retirement program

Front

Why is it important to start investing as soon as possible?

Back

You have more time for your money to compound