Economics Unit 2 Review

Setting aside money for future income, benefit, &profit to meet long-term goals

Which investing option is the least risky?

An investment that represents shares of ownership of the assets and earnings of a corporation

Amount of money that the insured pays directly to a provider a the time services are rendered

The riskier the event, the more expensive the insurance premium will be.

Interest earned not only on the principal but also on the interest already earned?

An investment tool that pools the money of many shareholders and in a diversified portfolio

Intentional and illegal deception of information for monetary gain is called what?

By reinvesting dividends, you are buying additional shares and increasing your investment.

This type of investment is essentially an IOU with a set rate of return.

A long-term investment usually means an investment period of one to three months.

A written request submitted to your insurance to cover a lost

Interest is the fee received for the use of money.

A saver who want her savings insured by the FDIC wants to use this savings option

Protection against risk is the primary reason people purchase this type of policy.

What is a risk management tool that protects against financial loss?

Which of these is not a type of insurance?

What is the dollar amount of a loss that is not insured, as specified in an insurance policy?

The payment a person makes to an insurance company in exchange for its promise of protection

Certificate to lend money on the promise that the debt will be paid with interest at a time

What is a strategy for reducing risk by selecting a wide variety of investments?

Stocks are insured against loss by most banks and credit unions

A retirement plan that is paid with pre-tax dollars to a company pool.

What do we call a collection of securities that an investor owns?

What is a type of government funded insurance?

When it comes to personal savings, what does the acronym PYF stand for?

What is the measure of the likelihood of loss or profit called?