Sec. 1 Why Save
__________ is setting aside income for a period of time so that it can be used later.
________, or owners of stock, invest in a corporation.
Stockholders
___________ are company plans that provide retirement income for their workers.
Pension Plan
A ______ is an investment company that pools the funds of many individuals to buy stocks, bonds, or other investments.
Mutual Fund
_________ is the spreading of investments among several different types to lower the overall risk.
Diversification
A __________ pays interest, has no maturity date, and from which funds can be withdrawn at any time without penalty.
Savings Account
Stockholders benefit from stock through ________ and by ________ their stock.
Dividends, Selling
A __________ allows the self-employed to set aside a maximum of 15% of their income, and then deduct that amount from their yearly taxable income.
Keogh Plan
A _________ is a type of mutual fund that uses investors' funds to make short term loans to businesses and banks.
Money Market Fund
Which type of investment is known to involve the most risk?
Stocks
A Money Market Deposit Account (MMDA) is another type of account that pays relatively high rates of interest and allows immediate access to one's funds through _____________.
Checks
A ___________ is an increase in the value of an asset and a ___________ is a decrease in the value of an asset.
Capital Gain, Capital Loss
A _____ is one of the most common types of Pension Plans where a portion of your paycheck is withheld and the company matches the amount.
401K
________ mature in a few days to 26 weeks.
Treasury bills
Which type of investment is considered to involve the least amount of risk?
Bonds
_______ is the period of time at the end of which time deposits will pay a stated rate of interest.
Maturity
A _________ is a certificate issued by a company or the government in exchange for borrowed funds.
Bond
A ___________ is a private retirement plan that allows you to save a certain amount of untaxed earnings per year with taxes only being taken out when you withdraw the funds.
Individual Retirement Account (IRA)
___________ mature in 2 to 10 years.
Treasury Notes
The __________ investigates any dealings among corporations, such as mergers, that affect the value of stocks.
Securities and Exchange Commission (SEC)
A ___________ states the amount of the deposit, the length of time until maturity is reached, and the rate of interest being paid.
Certificate of Deposit (CD)
Stock Market Indexes
A ________ is a private retirement plan that all interest you earn on your contributions is tax-free forever.
_________ mature in 30 years.
Treasury Bonds
The ___________, signed by FDR, protects many types of deposits up to $250,000.
Federal Deposit Insurance Corporation (FDIC)