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Saving and Investing Flashcards | StudBud
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Saving and Investing
Saving and Investing
40 terms
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StudBud Administration
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JH: Today's Business Class
Flashcards
40 cards
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Practice quiz
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Questions
40
Answers
1
The greater the investment risk, the greater the interest.
False
True
2
Investing in stocks is considered safe.
True
False
3
The lowest interest rate is usually earned on a
certificate of deposit
savings account
mutual fund
4
Why would you deposit money in the bank?
To take advantage of compounding interest
To keep money safe and easy to get to when needed
5
Certificates of Deposits are considered low risk.
False
True
6
A bond is like a loan a person gives to the government and to businesses for a period of time.
False
True
7
Compound interest is earned on the original deposit and also on all interests earned before.
True
False
8
Compounding interest is on the side of young people.
False
True
9
Compounding Interest makes your money grow faster.
True
False
10
The investment with the most risk would be
savings account
stocks
certificate deposit
11
What is capital loss?
Money lost
Money gained
12
When you are young, time is on your side to build wealth by diversifying your portfolio.
true
false
13
Bank pays a fixed amount of interest, on a fixed amount of money, for a fixed amount of time.
Bond
Mutual Fund
Certificate of Deposit
Savings Account
14
Savings account are considered safe.
True
False
15
You own a wide variety of stocks and mutual funds to lessen your risk of losing money this is..
saving
diversifying
compounding interest
16
Compounding interest is calculated on the initial principal and on the accumulated
interest.
True
False
17
Diversify means to spread the money around to share the risk.
True
False
18
PYF stands for...
Post Your Favorite
Pay Your Friend
Pay Yourself First
19
An asset is something you
Owe
Own
20
The best financial advice for young people is to start young, because time is on your side.
True
False
21
Only rich people can invest in the stock market.
True
False
22
When you purchase stocks or mutual funds, is that an asset?
no
yes
23
Professionally managed portfolios made up of stocks, bonds, and other investments is
stock in a company
a mutual fund
24
Investing in the stock market should be considered when making long term financial goals.
True
False
25
Which example shows a more diversified portfolio?
all money in one stock
having a savings account and mutual funds
all money in a savings account
26
What is simple interest?
Interest made on the new balance
Interest made on the initial amount deposited
27
A popular investing saying is to, "Buy Low, Sell High."
False
True
28
If you buy stocks in a company, you...
can lose all the money you used to buy the stock.
cannot lose any money, guaranteed.
29
The stock market is just one of many ways to invest your money.
True
False
30
Shares of stock represents
daily operation of the business
profit
ownership in a company
31
A savings account at the bank is considered to carry low risk.
True
False
32
What is diversification?
risk management technique, to spread out your money
buying only one stock
33
Low risk typically means low interest.
True
False
34
The Golden Rule of Investing is to "Invest in what you Know."
False
True
35
What is another name for capital in this unit?
a government office
money
36
A mutual fund is an investment issued by a state or local government agency.
true
false
37
Which one is more risky?
savings account
stocks
CD
38
A certificate issued by a bank to a person depositing money for a specified length of time is..
A Savings Account
A Certificate of Deposit
A Bond
39
Certificate of deposit (CDs) are held for a fixed amount of time.
True
False
40
What is capital gain?
money earned
money lost
