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Investments 1 Flashcards | StudBud
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Investments 1
Investments 1
12 terms
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StudBud Administration
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Basic risk and reward investment information.
Flashcards
12 cards
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Practice quiz
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Questions
12
Answers
1
This provides a return to stock owners
Capital Gain
Interest
Dividend
None of these
2
What type of risk is this? The market price of the asset falls.
Inflation
Default
Liquidity
Capital Loss
3
This is a fee that is charged to a borrower for the use of borrowed money
Capital Gain
None of these
Dividend
Interest
4
Why are investments risky?
Loss of money
Loss of life
Anything is risky
Asset is unknown
5
T-Bills, Cars, Gold Coins, Penny Stocks, Mutual Funds, and Land are examples of...
Risks
Capital Gains
Rewards
Financial Assets
6
Wealth creating investments that increase in value over time or provide a return are called...
Assets
Dividend
Capital Gains
What?
7
When an asset's value is greater than what you bought it for, this is called...
Interest
Capital Gain
Dividend
None of these
8
What type of risk is this? Market conditions affect the saver's ability to sell the asset.
Default
Capital Loss
Inflation
Liquidity
9
What is the relationship between risk and reward?
One goes up; the other goes up
One goes down; the other goes up
Indirect
No relationship
10
What type of risk is this? Saver earns a rate of return that is less than the inflation rate.
Default
Inflation
Liquidity
Capital Loss
11
What type of risk is this? The borrower might not repay the amount or promised interest?
Inflation
Default
Liquidity
Capital Loss
12
What kind of risk are you taking when you invest in an asset?
Health
Financial
Stupid
Business
