1. What is a money market account? (0.5 points)
Is a financial account that pays interest based on current interest rates in market 2. What is a liquidation policy? (0.5 points)
When firm is bankrupt and assets are sold and proceed to pay creditor 3. What is simple interest? (0.5 points)
Money you can earn by investing money 4. What is compound interest? (0.5 points)
Interest that is paid on both principal and any interest from past years 5. What is the time value of money? (0.5 points)
The principle that a certain currency amount of money from day to future 6. Name a strategy for saving money. (0.5 points)
Save your change Lesson 2 (3.0 points) 1. What is investing? (0.5 points)
Putting money toward something 2. What is financial risk? (0.5 points)
The possibility that shareholders will lose in debt 3. What is diversification? (0.5 points)
The spreading of risk among many type of investments 4. What is risk tolerance? (0.5 points)
Ability and willingness to accept decline prices of investiments 5. What are debt investments? (0.5 points)
A financial opportunity that involves someone investing on someone debt 6. What are equity investments? (0.5 points)
Money invested in a firm by its owner of common stock Lesson 3 (3.0 points) 1. What are stocks? (0.5 points)
Ownership in corporation 2. What are bonds? (0.5 points)
A debt security, kind of like a IoU 3. What is fraud? (0.5 points)
Theft
4. What is an annuity? (0.5 points)
A fixed sum of money paid to someone each year typically for the rest of their life 5. What is microfinance? (0.5 points)
Savings
6. What is venture capital? (0.5 points)
Capital invested in a person project in which there are a substantial element Lesson 4 (3.0 points) 1. What is a 401(k) account? (0.5 points)
Tax quality code 2. What is a mutual fund? (0.5 points)
An investment program funded by