Saving and Investing

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Risky investments

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May lead to a larger return on investment

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All of these are benefits to high liquidity investments except: A high rate of return, Easily accessible, Can convert to cash when needed, Less risky

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A high rate of return

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A mutual fund is

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An investment in a diversified group of stocks

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Which is the least risky? Options: Stock, CD, Savings account, Mutual fund

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Savings account

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Don't put all your eggs in one basket best refers to which of the following pieces of advice: Diversify your stock portfolio in order to reduce risk, Invest in a single stock for the largest gain, Take out as many loans as you can, Don't hesitate when buying stocks

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Diversify your stock portfolio in order to reduce risk

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Your credit score will be significantly lowered if you: You miss a loan payment, Buy a house, Take out a loan, Go to college

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You miss a loan payment

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Your house cost 100,000. You put 20% down. What is your down payment?

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$20,000

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A key difference between saving and investing is

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

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

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Stock

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The relationship between risk and return can be stated as

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Higher risk indicates higher return