Investments Flashcards

1
Q

When companies and other entities engage in sound business investment practices, it typically results in economic growth

A

Economic Investments

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2
Q

most well-known and simple type of investment

A

Stocks

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3
Q

An investment bank provides a variety of services to individuals and
businesses, including many services that are designed to assist individuals and
businesses in the process of increasing their wealth.

A

Investment Vehicles

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4
Q

a pool of many investors’ money that is invested broadly in a number of companies.

A

Mutual Funds

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5
Q

Generally, this is a business or a government entity.

A

Bonds

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6
Q

You give a bank a certain amount of money for a predetermined amount of time. When that time period is over, you get your principal back, plus a predetermined amount of interest. The longer the loan period, the higher your interest rate.

A

Certificates of Deposit

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7
Q

a very low-risk investment.

A

Certificates of Deposit

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8
Q

similar to mutual funds in that they are a collection of investments that tracks a market index.

A

Exchange-Traded Funds

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9
Q

4 ways to reduce your investment risk:

A
  1. Have a diversified portfolio of investments
  2. Know your investment goals
  3. Keep a close eye on your investments
  4. Watch out for scammers
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10
Q

is an asset or item acquired with the goal of generating income or
appreciation.

A

Investment

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11
Q

Types of investment:

A

Economic Investments
Investment Vehicles
Stocks
Bonds
Mutual Funds
Exchange-Traded Funds
Certificates of Deposit
Retirement Plans
Annuities
Cryptocurrencies
Commodities

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