math final

what is risk

• Risk is a guaranteed outcome.
• Risk is the absence of danger.
• Risk is a measure of success.
• Risk is the potential for loss or harm.

what is diversification

• Diversification is a strategy that guarantees high returns on investments.
• Diversification is a strategy to reduce risk by allocating investments among different financial assets.
• Diversification is a method to increase risk by concentrating investments in one asset.
• Diversification refers to the process of selling all investments to avoid losses.

what is investment simple terms

• Investment is the act of spending money on luxury items.
• Investment is the allocation of resources to generate profit or income.
• Investment is only for wealthy individuals.
• Investment is a type of savings account.

what is a traditional IRA vs a roth ira simple terms

• A Roth IRA allows for tax deductions on contributions, while a traditional IRA does not.
• Both IRAs require withdrawals to be taxed at the same rate.
• A traditional IRA has higher contribution limits than a Roth IRA.
• A traditional IRA offers tax deductions on contributions, while a Roth IRA provides tax-free withdrawals.

what is a debit card

• A debit card is a credit card that allows borrowing money.
• A debit card is a prepaid card that can only be used for online purchases.
• A debit card is a type of loan that must be repaid monthly.
• A debit card is a payment card linked to a bank account that allows direct access to funds for transactions.

what is a credit card

• A credit card is a savings account that earns interest on deposits.
• A credit card is a type of loan that must be repaid in full each month.
• A credit card is a payment card that enables the holder to borrow funds for purchases.
• A credit card is a physical card used only for online shopping.

what is a creditor

• A creditor is someone who borrows money.
• A creditor is a type of bank account.
• A creditor is a person who receives loans from others.
• A creditor is a person or entity that lends money or extends credit.

what is a finance charge

• A finance charge is the cost of borrowing money, including interest and fees.
• A finance charge is the amount saved from a discount.
• A finance charge is a government tax on income.
• A finance charge is a type of investment.

what is a interest rate

• A type of investment that guarantees returns
• A fee charged for using a credit card
• The amount of money saved in a bank account
• An interest rate is the cost of borrowing money or the return on savings, expressed as a percentage.

what is a late fee

• A late fee is a penalty charge for not paying on time.
• A late fee is a reward for early payment.
• A late fee is a discount offered for prompt payment.
• A late fee is a type of interest earned on savings.