Personal finance
What is the name of a market index tracking the performance of 500 of the largest public traded companies in the United States. Many investors, consider this as a benchmark to gauge the overall stock performance in the market.
The S&P 500
How can you own a tiny piece of a large public company?
By buying stock in that company
True or false, the only way to make money is to have a job
False. You can have a business or being an investor
something, typically money, that is owed or due
Debt
A percentage paid to a lender for the use of borrowed money is called
interest
What has historically had the highest rate of return over long periods of time?
Stocks
What is the name of a type of bank account that is FDIC insured and pace you higher levels of interest?
A certificate of deposit (CD)
Designed for holding money you don't plan to spend immediately
savings account
What is a bear market?
A time when stock prices are falling
Account that is Ideal for everyday transactions
Checking Account
What best describes what a cognitive bias is?
An error in the way we think that can influence our decisions
The pain of losing a $20 bill is felt more than the joy of finding it. This is a result of...
Loss aversion
What does FDIC Insured mean?
The federal government will repay your deposits of up to $250,000 if the bank fails.
What is a bull market?
When stocks are on the rise
A loan taken by individuals and businesses to make real estate purchases without paying the entire value of the purchase up front
Mortgage
The degree of uncertainty on how likely the investor is to make money on an investment
Risk
If a certificate of deposit is fully FDC insured so you can never lose money, and it pays you much more interest than a savings account, why wouldn’t everyone always choose a CD instead of a savings account?
In a CD you have to commit to leaving your money in the bank for a specific period of time usually several months or even a couple of years.
What is a brokerage account used for?
It’s a type of account used to buy and sell stocks, bonds, and funds
How can you buy stock?
You can buy stock easily through an oline brokerage account