Presentation Transcript

1. Saving and Investing Standard 5Test Review

2. If you need to save for a vacation, where should you put your money?

3. Savings Account

4. Who backs government savings bonds?

5. U.S. Government

6. How much risk is involved when you purchase a government savings bond?

7. Little or no default risk

8. What type of risk is involved in purchasing stocks?

9. High Risk

10. What is a good investment for long-term goals?

11. Stocks

12. _____ is how easy it is to turn an item into cash without losing any money.

13. Liquidity

14. What is the potential that you will not get your money back once it is invested

15. Default Risk

16. What is one of the best options to put aside money for long-term goals?

17. A mutual fund

18. Why is a mutual fund a good option to put your money in for long-term goals?

19. It is diversified

20. What is the original amount of money deposited for investing?

21. Principal

22. Investing in a mutual fund is good for someone with a

23. Low-risk tolerance

24. What shows past performance and how it might do in the future?

25. Average Rate of Return

26. How much money will you have at the end of three years if your principal is $50 and your interest rate is 10%? (simple interest)

27. $50 * 10% = $5$50 * 10% = $5$50 * 10% = $5$50 + $5 + $5 + $5 = $65

28. Which is more liquid?Money in a savings accountorMoney invested in real estate

29. Money in a savings account

30. Which form of interest provides the greatest return?

31. compound

32. Buying stocks in several different companies is known as

33. Diversifying a portfolio

34. True or FalseLow interest rates decrease the incentive to save.

35. True

36. True/FalseA savings account is best for meeting short-term goals.

37. True

38. True/FalseIt is better to wait until interest rates are high to start saving.

39. False

40. True/FalseInvesting tends to have a higher risk than savings, resulting in potentially higher rates of return.

41. True

42. What is an overall increase in prices?

43. inflation

44. What would increase the amount of time needed to double your money?

45. Low Interest Rates

46. What are designed to provide higher rates of return than savings accounts as the money is invested in very short-term investments with a low risk?

47. Money Market Mutual Funds

48. What is an easy way to determine how long it will take your money to double using compound interest?

49. The Rule of 72

50. True/FalseTaking the time to review your investments and make adjustments in your portfolio can be an expensive and time consuming process.

51. False

52. True/FalseTaking the time to review your investments and make adjustments in your portfolio is just as important as reviewing your personal and financial goals.

53. True

54. Deciding whether to go to a concert or to save illustrates

55. Opportunity Cost

56. What has a relatively high level of risk?

57. Stocks and Bonds

58. What type of interest is calculated as principal plus any interest they have already paid you?

59. Compound

60. True/FalseSavings and investing is only for wealthy people.

61. False

62. True/FalseSavings is only for people with high levels of income and investing is for people with limited income.

63. False

64. True/FalseSavings and investing is important for people of all income levels.

65. True

66. True/FalseSavings is only for people with limited income and investing if for people with high levels of income.

67. False