NGPF - Investing Unit Exam Questions and Answers Already Passed Latest Update 2025-2026
investing - Answers The process of setting money aside to increase wealth over time for long-
term financial goals such as retirement
savings - Answers money put aside for future use; growing your money is not the top objective
compound interest - Answers interest earned on both the principal amount and any interest
already earned
simple interest - Answers interest paid on the principal alone
reasons to put money in a savings account - Answers low risk
emergency fund
tips for first time investors - Answers keep investments diverse
don't be too risky
keep money invested for a long period of time
diversity - Answers variety
stock exchange - Answers a market for buying and selling stock
two ways to profit from owning stocks - Answers capital gains
dividends
capital gains - Answers The positive difference between the purchase price of a stock and its
sale price.
dividends - Answers payments of cash from a corporation to its stockholders
shareholder - Answers an owner of shares in a company
risk of purchasing stocks - Answers stock prices may drop
stocks - Answers securities that represent part ownership or equity in a corporation
bonds - Answers a certificate issued by a government or private company which promises to
pay back a loan with interest the money borrowed from the buyer of the certificate
what a bond holder receives - Answers interest
asset allocation - Answers the process of spreading your assets among several different types
of investments to lessen risk
investing - Answers The process of setting money aside to increase wealth over time for long-
term financial goals such as retirement
savings - Answers money put aside for future use; growing your money is not the top objective
compound interest - Answers interest earned on both the principal amount and any interest
already earned
simple interest - Answers interest paid on the principal alone
reasons to put money in a savings account - Answers low risk
emergency fund
tips for first time investors - Answers keep investments diverse
don't be too risky
keep money invested for a long period of time
diversity - Answers variety
stock exchange - Answers a market for buying and selling stock
two ways to profit from owning stocks - Answers capital gains
dividends
capital gains - Answers The positive difference between the purchase price of a stock and its
sale price.
dividends - Answers payments of cash from a corporation to its stockholders
shareholder - Answers an owner of shares in a company
risk of purchasing stocks - Answers stock prices may drop
stocks - Answers securities that represent part ownership or equity in a corporation
bonds - Answers a certificate issued by a government or private company which promises to
pay back a loan with interest the money borrowed from the buyer of the certificate
what a bond holder receives - Answers interest
asset allocation - Answers the process of spreading your assets among several different types
of investments to lessen risk
