- For most consumers, a home loan represents the ___ transaction they will ever make.
- ________ loans are offered by independent businesses as an advance on the customer's paycheck.
- Three steps to build wealth include 1) Have enough income to invest, 2) Make a plan, and 3) Put money to work by investing
- In the left column, rank the investments highest (#1) to lowest (#5) to show how they compare according to the potential for return- Balanced Mutual Fund- Certificate of deposit- Money Market Deposit account- Start-up stock- US Savings Bond
- If you buy Hershey stock, you share ownership in the company and you can vote on the types of chocolate that will be produced
- In the left column, rankthe investments highest (#1) to lowest (#5) to compare the riskof the investments.- Collectible- Corporate Bond- Mutual Fund- Savings Account- Stock
- The best time to start investing is after working on a job full-time for at least five years
- Minors have to wait until they are adults before they can buy and stocks and bonds
- Although he is only 17, Sean can invest in a retirement fund because he earns income from his summer job at the health club
- Most wealthy people have gained their fortunes by winning the lottery or inheriting a large sum of money.
- Earning interest on previously earned interest plus the principal amount
- Kendra just received a promotion with a nice raise. She has her spending plan under control, so she decides to adjust her long-range investing plan now that she can take on more investment risk. Which one of the following types of investments potentially has the highest riskand is most likely a higher rate of return for Kendra?
- Something of value thatcan be changed into cash
- Kyle isn't willing to take much risk with his money as hesets money aside to use when he buys a car next year. Which one of thefollowing types of investments potentially has the lowestinvestment riskwhile also growing in value?
- Spreading your money among different savings and investments
- Asystem where the public can buy or sell stock shares
- As Koneta decides how to invest her money, which one of the following options is most likely to grow at a rate higher than inflation?
- The time value of money can best be explained using which one of the following concepts?
- Monica starts a mutual fund with $500 and adds $500 to her mutual fund every year for anothernineyears. Mason decides to wait 10 years so he cansave up a lump sum of $5,000 to invest at one time in a mutual fund. If both Monica and Mason earn on average of 7 percent APY, who will have the larger mutual fund balance in 20 years?
- Given the same principal amount and interest of 1.3 percent APY for all options below, which option will earn the most interest over three years?