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Savings and Investing
Savings and Investing
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Savings and Investment Terms for Personal Financial Literacy
Flashcards
21 cards
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1
The money a person earns during a particular time period
income
commission
bonus
tip
2
The risk that an investment will be difficult to turn into cash
illiquid risk
political risk
liquidity Risk
market risk
3
A rise in the general price
hyperinflation
inflation
deflation
super inflation
4
A reward that influences choices
incentive
bonus
reward
surprises
5
The main criteria for choosing an investment
dividends
price
growth
safety
6
What you give up in order to get something else; the next best alternative
trade-off
spending
incentives
opportunity cost
7
shares of ownership in a corporation
stocks
mutual funds
bonds
options
8
People who own shares of stocks
investors
shareholders
employees
owners
9
buying a home is an example of this type of investment
Real Estate
assets
homeownership
land owership
10
Debt obligations of state or local governments
treasury bills
bonds
loans
stocks
11
The Wall Street Journal is an example of this investment source
newsletter
magazine
newspaper
full-service broker
12
Interest that is not only earned on the principal but also on the interest already earned
daily interest
annual interest
simple interest
compound interest
13
The amount of financial resources a person accumulates, or total assets minus total liabilities
net worth
capital
assets
dollar value
14
A procedure for determining how long it takes money to double at a particular rate of return
Rule of 54
Rule of 52
Rule of 84
Rule of 72
15
This is an example of a high-risk, high return investment
certificate of deposits
penny stocks
savings accounts
bonds
16
a type of bank deposit that you must leave in a bank for a specified period of time
money market
savings account
checking account
certificate of deposit
17
An investment risk which is unrelated to market trends
political risk
market risk
nonmarket risk
industry risk
18
A traditional retirement account that is tax-free when drawing out at retirement
401K
SEP
Roth IRA
IRA
19
An investment option where investors diversify assets shared by ownership in corporations
stock mutual fund
stocks
bonds
futures
20
An investment strategy in which a set dollar amount is invested on a regular basis
initial investment
average investment
daily averaging
dollar-cost averaging
21
a summary of a corporation's financial results for the year
quarterly assessment
board report
annual report
quarterly report