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Unit 5: Saving and Investing Flashcards | StudBud

Explore/Unit 5: Saving and Investing

Unit 5: Saving and Investing

10 terms·StudBud Administration·401 plays

CCP-Economics and Personal Finance

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Questions 10

Answers

1
What is the general relationship between risk and reward?
the higher the risk, the higher the potential reward
the amount of risk does not influence potential reward
the higher the risk, the lower the potential reward
there is a relationship, but it is uncertain
2
Which of the following would NOT be good advice for investing?
invest regularly
find good interest rates
take periodic withdrawals
invest early
3
What type of interest do you earn if interest is paid only on the capital invested?
Regular interest
Compound interest
Simple interest
Basic interest
4
Kobliner recommends simple stock purchases for an investor starting out.
True
False
5
Which of the following would cause the current value of bonds to increase?
Interest rates decrease.
Government regulation increases.
The number of bonds issued increases
Average income falls.
6
Common stock provides the shareholder with
insured protection on investment.
guaranteed annual dividends.
ownership in a company
a set interest rate per year
7
The two types of money market funds are _ and _.
taxable, tax-exempt
mutual, bond
stock, bond
small, large
8
Buying shares of corporate stock tends to be risky when
the stock may have to be sold within a few months.
all of these are risky
all stocks bought are in the same industry
the stock of a single corporation is purchased.
9
What are the three most important criteria to consider when investing?
size, insurance, taxes
risk, rate of return, liquidity
collateral, access to accounts, dividends
leverage, margins, credit
10
investment that pools together the money of 1000s of people and invests it diverse securities.
stocks
mutual fund
bonds
money market