CD and money market accounts are both examples of investments with _______ risk and ______ returns

• low; low

• low; high

• high; high

• high; low

When you are investing in a mutual fund, you are contributing to a pool of money that will be..

• given to hundreds of charities in your area

• invested in a mix of stocks and bonds

• taxed based on each individual investor's annual salary

• put into a separate savings account for your children to inherit

refers to the monetary gain or loss of an investment over time

• ROY

• IRA

• IRO

• ROI

when your investments are well diversified, your risk level is _______

• high

• low

• aggressive

• moderate

mutual funds are less risky and can outperform the stock market because...

• they are not diversified

• they guarantee a high rate of return

• they are fully liquid

• they invest in several companies at once

the practice of dividing the money a person invests among different types of investments in order to lower risk

• portfolio

• diversification

• stock market

• multual fund

a legal document listing how a person wants their assets distributed after their death

• will

• portfolio

• diversification

• beneficiary

What is the 5th foundation?

• build wealth and give

• pay cash for a car

• pay cash for college

• save for retirement

usually the more liquid an asset, the less return you can expect.

• True

• False

a retirement savings plan offered by an employer to its employees who contribute money from their gross pay

• IRA

• Roth IRA

• mutual fund

• 401(k)