Personal Finance Unit 6.3 Vocabulary

Question 1

A situation where the owner holds the legal title to the property, such as a home.

Answer 1

Direct Investment

Question 2

Land or buildings that produce lease income

Answer 2

Commercial Property

Question 3

An investment in real estate where a trustee is appointed to hold the legal title on behalf of the other investors.

Answer 3

Indirect Investment

Question 4

An item that people possess and keep on the hopes that it’ll increase in value

Answer 4

Collectible

Question 5

An investment in a group of mortgages, usually though a government agency

Answer 5

Participation Certificate

Question 6

The use of borrowed money for investment purposes

Answer 6

Financial Leverage

Question 7

An indirect investment into real estate that works similar to a mutual fund

Answer 7

REIT

Question 8

A valuable precious metal

Answer 8

Rhodium

Question 9

Rough minerals that are then sharpened into jewels or industrial materials

Answer 9

Precious Gems

Question 10

One example of a federal agency that sells participation certificates

Answer 10

Fannie Mae