Ch4 Investments, Insurance and Identity Theft

A savings account should be used for your emergency fund and your

• Short-term savings goals

• Long-term savings goals

This type of investment represents small pieces of ownership in a company.

• Stocks

• Bonds

• Mutual funds

• Certificates of deposit

This type of investment involves a pool of money collected from a group of investors.

• Stocks

• Bonds

• Mutual funds

• Certificates of deposit

A type of savings account where you agree to leave your money alone for a period of time.

• Stocks

• Bonds

• Mutual funds

• Certificates of deposit

Which of the following types of investment carries the greatest risk?

• Stocks

• Bonds

• Mutual funds

• Certificates of deposit

The money you pay for an insurance policy is called your

• Dividend

• Coverage

• Premium

• Copay

Which of the following types of insurance would cover your costs associated with a car accident?

• Auto

• Health

• Disability

• Long-term care

Which of the following types of insurance would cover costs associated with the theft of belongings from your house?

• Homeowners or Renters

• Health

• Disability

• Long-term care

Explain why a savings account is not a good option for long-term wealth building.

• A savings account is not a good option for long-term wealth building due to low interest rates and lack of investment growth potential.
• Savings accounts provide excellent growth potential over time.
• Savings accounts are ideal for retirement planning.
• Savings accounts offer high returns on investment.

List four ways you can protect yourself against identity theft.

• 1. Monitor your credit reports regularly. 2. Use strong, unique passwords. 3. Enable two-factor authentication. 4. Be cautious with personal information sharing.
• Ignore suspicious emails and messages.
• Use the same password for all accounts.
• Share your passwords with friends.