Savings & Investment Vocabulary List

What is a bank account that allows you to deposit money and earn interest on it, typically used for saving money for short-term goals?

• Savings Account

• Checking Account

• Fixed Deposit Account

• Current Account

What is a plan that outlines how much money you expect to earn and spend over a certain period, helping you manage your finances effectively?

• Budget

• Invoice

• Receipt

• Loan

What is a savings account set aside for unexpected expenses, such as medical bills or car repairs, usually covering 3-6 months of living expenses?

• Emergency Fund

• Retirement Fund

• Vacation Fund

• College Savings Account

What is a traditional savings account that allows easy access to funds, generally offers lower interest rates, and is suitable for general savings?

• Passbook Savings Account

• Fixed Deposit Account

• Recurring Deposit Account

• Current Account

What is the act of putting money into financial assets (like stocks or bonds) with the expectation of earning a profit over time?

• Investment

• Spending

• Saving

• Borrowing

What are payments made by a corporation to its shareholders, usually from profits, providing regular income to investors?

• Dividends

• Bonds

• Royalties

• Premiums

What is a retirement savings plan offered by employers that allows employees to save a portion of their paycheck before taxes are taken out?

• 401(k)

• IRA

• Roth IRA

• Savings Bond

What is a type of savings account that offers tax advantages for retirement savings and can be opened by individuals?

• IRA (Individual Retirement Account)

• Certificate of Deposit (CD)

• Regular Savings Account

• Money Market Account

What is the strategy of spreading investments across different assets to reduce risk and help protect against losses in one particular investment?

• Diversification

• Speculation

• Concentration

• Leverage

What is an investment vehicle that pools money from many investors to buy a diversified portfolio of stocks, bonds, or other securities?

• Mutual Fund

• Savings Account

• Certificate of Deposit

• Credit Card