study questions 4
Answer each question fully. Complete sentences are not necessary. MADYSON WELTY
Lesson 1 (3.0 points) What is a liquidation policy? (0.5 points) a business or firm being terminated or bankrupt and its assets are sold and the proceeds will be used to pay for the creditors that they owe money.
What is simple interest? (0.5 points) interest paid on the principal alone. 1. What is a money market account? (0.5 points) a financial account that pays interest based on current interest rates in the market.
2.
3. What is compound interest? (0.5 points) the interest you earn each year grows and adds up.
4. What is the time value of money? (0.5 points) the principle that the purchasing power of money can vary over time.
5. Name a strategy for saving money. (0.5 points) putting a percentage of your paycheck straight into the bank so you wont be tempted to spend it. Lesson 2 (3.0 points)
1. What is investing? (0.5 points) how you make your money grow
2. What is financial risk? (0.5 points) the possibility that shareholders will lose money when they invest in a company that has debt.
3. What is diversification? (0.5 points) reducing nonsystematic risk by investing in a variety of assests.
4. What is risk tolerance? (0.5 points) the degree of variability in investment returns that an individual is willing to withstand.
5. What are debt investments? (0.5 points) the process of investing in someone or somethings debt schedule .
6. What are equity investments? (0.5 points) money that is invested in a firm by its owners or holders of common stock but which is not returned in the normal course of business. Lesson 3 (3.0 points)
1. What are stocks? (0.5 points) the buying and selling of business that could make you money when they get big.
2. What are bonds? (0.5 points) debt security. Loaning money to the gov.
3. What is fraud? (0.5 points) taking money that isn’t yours and tricking people
4. What is an annuity? (0.5 points) a contract between you
Lesson 1 (3.0 points) What is a liquidation policy? (0.5 points) a business or firm being terminated or bankrupt and its assets are sold and the proceeds will be used to pay for the creditors that they owe money.
What is simple interest? (0.5 points) interest paid on the principal alone. 1. What is a money market account? (0.5 points) a financial account that pays interest based on current interest rates in the market.
2.
3. What is compound interest? (0.5 points) the interest you earn each year grows and adds up.
4. What is the time value of money? (0.5 points) the principle that the purchasing power of money can vary over time.
5. Name a strategy for saving money. (0.5 points) putting a percentage of your paycheck straight into the bank so you wont be tempted to spend it. Lesson 2 (3.0 points)
1. What is investing? (0.5 points) how you make your money grow
2. What is financial risk? (0.5 points) the possibility that shareholders will lose money when they invest in a company that has debt.
3. What is diversification? (0.5 points) reducing nonsystematic risk by investing in a variety of assests.
4. What is risk tolerance? (0.5 points) the degree of variability in investment returns that an individual is willing to withstand.
5. What are debt investments? (0.5 points) the process of investing in someone or somethings debt schedule .
6. What are equity investments? (0.5 points) money that is invested in a firm by its owners or holders of common stock but which is not returned in the normal course of business. Lesson 3 (3.0 points)
1. What are stocks? (0.5 points) the buying and selling of business that could make you money when they get big.
2. What are bonds? (0.5 points) debt security. Loaning money to the gov.
3. What is fraud? (0.5 points) taking money that isn’t yours and tricking people
4. What is an annuity? (0.5 points) a contract between you