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Investing Basics

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