FUNDAMENTALS OF INVESTING CERTIFICATION EVALUATION COMPLETE QUESTIONS AND SOLUTIONS GRADED APLUS

FUNDAMENTALS OF INVESTING
CERTIFICATION EVALUATION COMPLETE
QUESTIONS AND SOLUTIONS GRADED
APLUS

●● investments have the potential for __________ returns
Answer: higher


●● all investments have some __________
Answer: risk


●● investments are important to building ____________ ____________
Answer: net worth


●● investments are for ___________ ____________ goals
Answer: long term


●● rate of return
Answer: total return on investment expressed as a percentage of the
amount of money saved


●● total return divided by amount of money invested equals

, Answer: rate of return


●● return
Answer: profit or income generated by saving and investing


●● investment risk
Answer: possibility that an investment will fail to pay the expected
return


●● why are investments less liquid than savings tools?
Answer: they may not be easily converted to cash


●● strive to have the rate of return on an investment be ___________
than the rate of inflation
Answer: higher


●● inflation risk
Answer: the danger that money won't be worth as much in the future as
it is today


●● bond
Answer: form of lending to a company or the government