Investing: Vocabulary 2 Application

Ava is interested in growing her savings. She decides to (a)   resources, usually money, in order to generate income or profit. It involves purchasing assets such as stocks, bonds, real estate, or other financial instruments with the expectation that they will appreciate in value or provide returns over time.

• invest

• save

• spend

• donate

Isla is considering investing in a new business venture. What is the definition of Risk in this context?

• Risk is the possibility of loss or injury.

• Risk is the guarantee of success.

• Risk is the absence of any danger.

• Risk is the certainty of profit.

Stocks are (a)   .

• A type of investment representing o
• A type of bond issued by government
• A form of currency used in internat
• A type of insurance policy

What are Bonds?

• A type of investment where you lend money to an entity and earn interest over time.

• A type of stock that represents ownership in a company.

• A digital currency used for online transactions.

• A financial instrument used to insure against losses.

What is a Mutual Fund?

• A type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities

• A type of savings account offered by banks

• A government bond issued to raise funds for public projects

• A type of insurance policy for health coverage

An Exchange-Traded Fund (ETF) is (a)  

• A type of investment fund and excha
• A type of savings account offered b
• A form of cryptocurrency used for o
• A government bond issued to raise f

What is an Index Fund?

• A type of mutual fund designed to follow a specific benchmark or index.

• A savings account with a fixed interest rate.

• A type of bond issued by corporations.

• A high-risk investment strategy.

What is an Individual Retirement Account (IRA)?

• A retirement savings account with tax advantages

• A type of health insurance plan

• A government bond

• A savings account for education expenses

A Traditional IRA is (a)   .

• A retirement savings account with t
• A type of health insurance plan
• A savings account for education exp
• A checking account for daily expens

What is a Roth IRA?

• A type of retirement savings account that allows your money to grow tax-free.

• A type of savings account for medical expenses.

• A type of investment account for education expenses.

• A type of checking account with high interest rates.