12.1 Vocab

Question 1

investing

Answer 1

the process of setting money aside to increase wealth over time for long-term financial goals, such as retirement

Question 2

the process of setting money aside to increase wealth over time for long-term financial goals, such as retirement

Answer 2

investing

Question 3

return on investment (ROI)

Answer 3

the measurement of gain or loss generated on an investment relative to the amount of money invested

Question 4

the measurement of gain or loss generated on an investment relative to the amount of money invested

Answer 4

return on investment (ROI)

Question 5

risk-return ratio

Answer 5

relationship of expected return (profit you expect to make) compared to the amount of risk (amount you stand to lose if the price goes down) taken with a given investment

Question 6

relationship of expected return (profit you expect to make) compared to the amount of risk (amount you stand to lose if the price goes down) taken with a given investment

Answer 6

risk-return ratio

Question 7

liquid asset

Answer 7

an asset that can be easily bought or sold

Question 8

an asset that can be easily bought or sold

Answer 8

liquid asset