POF Lesson 3 Questions with Complete Correct Answers | Grade A+

annuity Ans: A type of investment where money is exchanged for a series of equal payments over time. These are sold by life insurance companies and are often purchased to provide retirement income and shift the responsibility for investing to an investment company. bond Ans: A loan an investor makes to a government or corporation for a specified amount of time for the purpose of raising capital for the government or corporation. In return the investor receives the principal plus interest. capital Ans: The financial resources that are used to make money, which can take the form of equity or debt. financial intermediary Ans: An institution that provides a service for those who have extra money to save or lend and channels it to those who wish to invest or borrow. mutual funds Ans: Investment products that combine the money from a large group of investors to buy stocks and other investments. pension funds Ans: Financial products that specialize in gathering payments into retirement funds and investing those payments so that they can accumulate to provide income at retirement. savings and loan associations Ans: Depository financial institutions that specialize in home mortgage loans. stoc