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