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PF Obj. 5 Saving and Investing Flashcards | StudBud

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The original amount of money invested is:

Which is the most liquid type of savings tool?

PF Obj. 5 Saving and Investing

11 terms·StudBud Administration·183 plays

personal finance BF05 curriculum, saving, investing

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Questions 11

Answers

1
Which is the most liquid type of savings tool?
checking
savings
money market
certificate of deposit
2
The original amount of money invested is:
Principal
Time Value
Compound interest
Consumption
3
What best describes compound interest?
interest on interest
earned on saving or investing
earned on principal only
no effect on total return on investment
4
Which savings tool pays the highest interest rate?
money market
certificate of deposit
savings
checking
5
Rate of return must be higher than:
Initial Investment
Purchasing Power
GDP
Inflation
6
Saving for an emergency fund rather than spending on junk food
trade off
interest
SMART goal
opportunity cost
7
Which features certificate of deposit?
tiered interest rates
easy access
required length of time
high liquidity
8
Stock volatility refers to:
Prices that change frequently
Rate of return
APR
Prices that remain constant
9
What is the best way to use time value of money for the biggest return?
Invest as long as possible at highest rate possible
Make 1 large investments but no more
Only worry about rate of return regardless of invest time
Invest small amounts for short times at high rates
10
Which features a money market account?
easy access
required length of time
tiered interest rates
high liquidity
11
What is the best description of liquidity?
how easily asset converts to cash
money required to pay for necessities & comforts
amount in savings
measure of assets owned after debts paid