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Money Matters Unit3
Question | Answer |
---|---|
Investment type where you lend bank or credit union your money in exchange for earning intrest | Income Investment |
A process whereby the value of an investment invcreases exponentially over time due to earning interest on interest | Compounding |
Used to determine how long it takes for your money to double | Rule of 72 |
Founded in 1896 and published by the Wall Street Journal; tracks 30 key stocks | DJIA |
A prolonged period in which investment prices fall accompanied by widespread pessimism | Bear Market |
Profit that results when the price of an investment rises above its purchase price and the security is sold | Capital Gain |
A portfolio strategy designed to reduce exposure to risk by combining a variety of investments options | Diversification |
A group of companies the market has overlooked and is undervalued compared to similar companines | Value funds |
A group of companies that are growing quickly and posses some sort of competitive advantage | Growth funds |
Type of investment that makes you an owner | growth investment |
The idea that a dollar now is worth more than a dollar in the future because it can be invested and earn interest over time. | Time Value of Money |
Longer-term, more risky investing option | investments |
Companies worth less than $300 million that are startups, takeovers, or about to exploit new markets | Micro-Cap Funds |
Systematically invest the same amount in the same investment at regular intervals to reduce the impact of price swings. | Dollar Cost Averaging |
Price paid for the use of borrowed money | Interest |
The loss incurred when a capital asset(investment or real estate) decrease in value | Capital loss |
Short-term, low risk investing option that offers minimal intrest | savings |
a company that brings together money from many people and invests it in stocks, bonds or other assets | Mutual Funds |
Launched in 1971 as the world's 1st electronic stock market; tracks more than 3,200 stocks from 37 countries across all industry sectors | NASDAQ |
A prolonged period in which investment prices rise faster than their historical average | Bull Market |
Which market tracks the most stocks from around the world? | The NASDAQ |
Which of the following investment classin companies with market values of less than $2 billion, are likely to have recently incorporated and have the potential to grow quicly | Small- cap funds |
Which is NOT an example of a low risk/low reward investement | Commodities |
Compounding is driven by which two variables? | Time and Rate of Return |
Which equality index is the most commonly follow in the US? | DIJA |
Which of the following is NOT a characterics of a Growth Fund? | Least risky investment style |