Investing Basics
Buying a bond means you are doing this with your money.
What is lending money to a company or the government?
This is money earned from owning a stock, usually paid quarterly to shareholders.
What are dividends?
This type of financial institution is member-owned and often offers lower loan rates.
What is a credit union?
A fixed dollar amount you pay each time you receive medical care.
What is a copay?
A monthly record showing deposits, withdrawals, and account balance.
What is a bank statement?
This represents ownership in a company.
What is a stock?
This is the fee charged by a mutual fund or investment manager for handling your money.
What is an expense ratio (or management fee)?
This type of financial institution specializes in loans for homes and real estate.
What is a savings and loan association?
A percentage you pay each time you receive medical treatment after your deductible.
What is coinsurance?
When your bank statement and your check register don’t match, you must do this.
What is reconcile the account?
TRUE or FALSE: A bond has an end date, but a bond fund does not.
What is True?
Putting money into different types of investments to lower risk is called…
What is diversification?
A financial institution that provides the widest range of services, including checking, savings, and loans.
What is a commercial bank?
Auto insurance that covers the cost of repairing your own car after a crash.
What is collision coverage?
A payment that has been recorded in your check register but not yet cleared by the bank.
What is an outstanding check?
A company’s market value (market cap) tells you what?
What is how much the whole company is worth?
_____________ has lower risk and a lower return...
What are bonds?
Payday lenders and check-cashing outlets usually have this drawback.
What are high fees?
Auto insurance that protects your car from weather, vandalism, or theft.
What is comprehensive coverage?
This is added to your account when you deposit a paycheck.
What is a credit?
If interest rates go up, the value of an old bond with lower interest goes…
What is down?
This index tracks the 500 largest U.S. companies and is often used to measure the overall stock market’s performance.
What is the S&P 500?
One difference between banks and credit unions is that banks are ________, while credit unions are ________.
What is for-profit and non-profit?
The maximum amount an insurance company will pay for a claim.
What is the coverage limit?
When you withdraw more than you have in your account, you may face this fee.
What is an overdraft fee?