Study 4 Question 4

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Section 4 Study Questions (12.0 points) Answer each question fully. Complete sentences are not necessary. Lesson 1 (3.0 points) What is a liquidation policy? (0.5 points) being told how and when your able to move your money in or out. 1What is simple interest? (0.5 points) interest gain only by the amount in the account. What is compound interest? (0.5 points) interest that gains its own interest. What is the time value of money? (0.5 points) The money is worth more the faster its recived. Name a strategy for saving money. (0.5 points) Spending wise. What is a money market account? (0.5 points) A depoit account offered from the bank. Lesson 2 (3.0 points) What is investing? (0.5 points) you give money to make money. What is financial risk? (0.5 points) possablity to lose money. What is diversification? (0.5 points) Spreading investments What is risk tolerance? (0.5 points) the amount of risk you can handle. What are debt investments? (0.5 points) non promised investments What are equity investments? (0.5 points) more promised investments Lesson 3 (3.0 points) What are stocks? (0.5 points) an investment where you get a share from the ownership/stock. What are bonds? (0.5 points) lending money to a company. What is fraud? (0.5 points) illegal transactions What is an annuity? (0.5 points) a agreement made with an insurance What is microfinance? (0.5 points) a loan to low income. What is venture capital? (0.5 points) investment in a project. Lesson 4 (3.0 points) What is a 401(k) account? (0.5 points) a common retirement What is a mutual fund? (0.5 points) money invested in stocks What is a broker? (0.5 points) financial professional Name a stock market indicator in the U.S. (0.5 points)

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