personal finaace

Question 0

What are the three factors that influence saving money?

Answer 0

time, interest rate, and principle

Question 1

liquidity

Answer 1

can quickly and easily be converted into cash

Question 2

compound interest

Answer 2

earning interest on interest

Question 3

opportunity cost

Answer 3

the value of the next best alternative that must be forgone as a result of a decision

Question 4

trade off

Answer 4

giving up one thing for another

Question 5

pay yourself first

Answer 5

a saving strategy that states to set aside a predetermined portion of money for saving each time a person is paid

Question 6

most liquid savings tool

Answer 6

checking account

Question 7

security level of savings tool

Answer 7

extremely safe

Question 8

what account has a tiered interest rate

Answer 8

money market

Question 9

what are the features of a CD

Answer 9

fixed period of time

Question 10

what are the features of a money market account?

Answer 10

minimum balance tiered interest

Question 11

What is inflation?

Answer 11

rising cost of goods

Question 12

What is the relationship between risk and reuturn?

Answer 12

higher return, greater risk

Question 13

What is a diversified portfolio?

Answer 13

wide area of investment

Question 14

stock

Answer 14

a share of ownership in a company

Question 15

current market price

Answer 15

price of a stock today

Question 16

dividend

Answer 16

return on investment and stock

Question 17

mutual funds

Answer 17

when a company combines the funds of many different investors and then invests that money in a diversified portfolio

Question 18

bond

Answer 18

form of lending to a company or the government

Question 19

rule of 72

Answer 19

formula used to calculate how long it will take for your investment to double