1. { Savings & Invested Test Review

2. { Interest The percentage rate paid on money you have invested/saved…

3. { 6 It is recommended you save __ months of expenses to be more financially secure.

4. { Certificate of Deposit This savings tool option makes the highest amount of interest.

5. { Savings Account Which savings tool is most liquid?

6. { Savings Portion of your income not spent on current expenses…

7. { Money Market Deposit Account This savings tool has a minimum deposit requirement, and limits withdrawals…

8. { Certificate of Deposit This savings tool has a time requirement with penalties for early withdrawals…

9. { Return Profit or Income generated from savings and investing is called _______.

10. { An Investment An asset purchased with the goal of providing additional income is called _______.

11. { Returns & Risk When comparing savings and investing, investing has the potential for higher ______.

12. { long Money you invest is usually used for _____-term goals.

13. { Investment Risk The possibility that your investment will fail to produce a return…

14. { 10% It is recommended that you save ____ of your monthly income.

15. { Higher The higher the risk on an investments, the ______ the return.

16. { a house An example of a long term investment is ______.

17. { Bond This investment is a form of lending money to a company or the government.

18. { Maturity Date A specified time in the future when the principal amount an the interest is repaid to the investor.

19. { Mutual Fund When you give in investor your money and they invest it in several different types of investments.

20. { Real Estate Investment in commercial or residential property.

21. { Stocks Purchasing a share of ownership in a company.

22. { Dividend When you earn a return on a stock, it is called a _____.

23. { Stockholder or Shareholder The owner of stock is called a ______.

24. { False If you are a stockholder, you will always receive a dividend.

25. { Speculative, Real Estate, Commodities The three highest risk Investments (and are located at the top of the pyramid) are ____, ____, ____.

26. { Diversify _________ is when you reduce your investment risk by purchasing different types of investments.

27. { Largest Amount Highest Rate The longest time When looking at the time value of money it is best to invest ______ at the _______ for ______.

28. { Principal X Rate X Time The equation for Simple Interest is _______.

29. { Principal(1+Rate) N (N= Number of times Compounded) The equation for Compound Interest is _______.

30. { Save When looking at whether to save or invest, you should _____ if your trying to plan for an emergency.

31. { Invest When looking at whether to save or invest, you should _____ if your trying to plan for your retirement.