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