Investment Concepts and Real Estate

Which of the following is NOT a risk when investing in real estate?

• 
  tenants may not pay rent

  
  

• 
  tenants may destroy your property

  
  

• 
  real estate values may increase

  
  

• real estate values may decrease

Which of the following investments is NOT in the Stock Market?

• mutual funds

• ETFs

• real estate

• individual stocks

Identify the investment:
- the investor loans money to a city or county government, or a company
- money is repaid after a certain date, plus interest is paid
- generally considered a safe investment, although not insured by the FDIC

• bonds

• ETF

• Savings account

• mutual funds

Who assists you in purchasing real estate?

• stockbroker

• real estate agent

• insurance agent

• police officer

Identify the investment:
- insured by the FDIC
- lowest interest rate of all investments
- in most cases, you can make up to 3 withdrawals per month

• money market

• traditional savings account

• ETFs

• CDs

Identify the investment:
- risky
- ownership in a corporation
- pays dividends
- potential for reward is high

• stocks

• bonds

• commodities

• real estate

Identify the investment:
- pools similar stocks together
- the most popular type of investment
- safer than investing in individual stocks

• mutual funds

• bonds

• real estate

• commodities

Identify the investment:
- insured by the FDIC
- earns higher interest than a traditional savings account
- requires a higher balance than a traditional savings account

• ETF

• money market account

• bonds

• stocks

Rank these investments from safest to riskiest:

• Savings accounts, ETFs, Bond, Individual stocks

  
  

• Savings accounts, Bonds, ETFs, Individual stocks

  
  

• 
  Savings accounts, ETFs, Individual stocks, Bonds

  
  

• Bonds, Savings accounts, Individual stocks, ETFs

Marcus has received a $20,000 gift for graduating high school, and he wants to invest is money in the stock market. Which of the following would NOT be able to help him?

• websites like ETrade

• real estate agents

• stockbroker

• financial advisor