Investment Concepts and Terminology

What is the recommended amount of expenses to have saved in an emergency fund?

• 1-2 months

• 3-6 months

• 6-12 months

• More than 12 months

What is the main goal of investing?

• To spend money quickly

• To buy an asset that will grow in value and generate profit

• To keep money in a piggy bank

• To avoid paying taxes

Which of the following is NOT mentioned as a type of asset you can invest in?

• Stock

• Bond

• Savings account

• Rental property

When considering "Accessibility" for an investment, what question should you ask yourself?

• How much profit will I make?

• How easily can I buy this asset?

• What are the risks involved?

• How long will I need to keep this investment?

What is an "account minimum" in investing?

• The maximum amount of money you can invest.

• The smallest amount of money required to start or maintain an investment.

• A fee charged for selling an asset.

• The total profit you expect to make.

Why is considering the "Timeline" important when investing?

• It determines how many fees you will pay.

• It helps you decide if you should invest for the short-term or long-term.

• It tells you how accessible the investment is.

• It shows you the exact profit you will earn.

What does "personal risk tolerance" refer to in investing?

• How much money you are willing to lose.

• The total amount of money you have saved.

• The fees associated with an investment.

• How quickly you can sell an asset.

What does "liquidity" mean in the context of investments?

• How much money an investment will earn.

• How quickly and easily an asset can be sold for cash.

• The amount of risk associated with an investment.

• The fees charged for managing an investment.

What does it mean to own a stock in a company?

• You have loaned money to the company.

• You own a small piece of that company.

• You are guaranteed to make a profit.

• You are responsible for managing the company.

What type of investment is a bond considered?

• An ownership investment

• A loan investment

• A high-risk investment

• A short-term investment only