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Investing Basics
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Is measured as a % of the amount you invested.
Selling
Rate of Return
Investing
Diversification
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Definition: Saving in a way that earns income.
Investing
Paying
Return
Spending
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You should only invest if you know you'd be financially stable if you lost some of that money.
True
False
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Definition: The income you earn on a return.
Investments
Stocks
Review
Return
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Higher risk usually leads to a higher rate of
Bank accounts
Return
Risk
Diversification
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Which is the least risky way of investing money?
In a bank
In a new store
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What is the difference between saving and investing?
nothing
Saving is more risky
Investing is less risky
Investing is more risky
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Definition: The chance that an investment will decrease in value.
Income
Chance
Unstable
Risk
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Definition: Investing in various businesses with different levels of risk.
Wise
Variety
Diversification
Money
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Should you invest in a risky way if...
You have a low income
You are retired
you're homeless
You have lots of money to lose
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Savings accounts, CDs, Money Market accounts, and Government Bonds are all forms of
Shopping
Buying
Spending
Investing
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It would be smart to invest all your money in a new business
False
True
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