{ Savings & Invested Test Review

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

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

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

{ Savings Account Which savings tool is most liquid?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

{ Real Estate Investment in commercial or residential property.

{ Stocks Purchasing a share of ownership in a company.

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

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

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

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

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

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

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

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

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

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