Unit 2 Saving, Investing, and Risk Management Review

Generally, investments in stocks, bonds, and mutual funds

• long-term investments

• short-term investments

savings accounts, CDs, and money markets

• places to invest that insure your money

• types of loans that require collateral

• financial instruments that guarantee high return

A business that provides money-related services

• savings account

• manufacturing industry

• financial institution

• interest

the possibility of financial loss or physical harm

• stock

• mutual fund

• interest

• risk

A share of a corporation sold to the public

• stock

• savings account

• bond

• mutual fund

Federal Deposit Insurance Corporation: a federally sponsored corporation that insures accounts in national banks and other qualified institutions

• FICA

• FDIC

• SIPC

• SEC

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

• interest

• bond

• stock

• mutual fund

the next best alternative given up when making a financial choice

• comparative advantage

• marginal cost

• sunk cost

• opportunity cost

the amount of money originally invested

• principal

• theory

• short-term investments

• interest

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

• opportunity cost

• savings account

• mutual fund

• interest