Buying something with the expectation that it will make money for you
What is investing
200
Provide regular earnings, such as monthly interest, quarterly dividends, or, in the case of real estate, rent payments.
Income Investments
200
Something owed to a person
What is a liability
200
How many "must-ask" questions are there before you invest?
8
200
What is the difference between saving and investing?
Saving is setting aside money you don't spend now so it can be used later. Investing is buying something with the expectation that it will make money for you.
300
If you put in $100, you take out $100 is an example of...
Ease of Access
300
What is the difference of assets and liabilities?
An asset in a item of value that can be converted into cash. A liability is something owed to another person.
300
You lend money to a government or company
What is a bond
300
What is a 401(k) plan?
A plan is known as an employer-sponsored plan, but you own your account.
300
What is the simple interest rate formula?
I=PRT
400
What is the Compound Interest Formula?
A = P(1+r/n)^nt
400
Name the types of bonds
Government, Municipal, and Corporate
400
What is a way to reduce risk?
Diversification
400
If you are a minor what do you need to set up to hold stocks?
A custodial account
400
What is the inflation rate?
3%
500
The increase in the cost for the same items is expressed as a percentage
According to recent studies what percent of stock market swings were logical?
25%
500
What are the "must-ask" questions before you invest?
What's my financial objective? What's my risk tolerance? Am I ready to hold the investment for a while? Do I understand what I'm buying? What's the outlook? Is this a good (or too good) price? What are the costs? Why am I buying it?
500
What are the two major stock exchanges in America?
The New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotation System (NASDAQ)