Page 1 of 6
NGPF INVESTING UNIT QUESTIONS WITH CORRECT
AND GRADED 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 - answer-bonds
The process of setting money aside to increase wealth over time for
long-term financial goals such as retirement - answer-investing
money put aside for future use; growing your money is not the top
objective - answer-savings
interest earned on both the principal amount and any interest
already earned - answer-compound interest
interest paid on the principal alone - answer-simple interest
low risk
emergency fund - answer-reasons to put money in a savings
account
keep investments diverse
don't be too risky
keep money invested for a long period of time - answer-tips for first
time investors
, Page 2 of 6
variety - answer-diversity
a market for buying and selling stock - answer-stock exchange
capital gains
dividends - answer-two ways to profit from owning stocks
The positive difference between the purchase price of a stock and its
sale price. - answer-capital gains
payments of cash from a corporation to its stockholders - answer-
dividends
an owner of shares in a company - answer-shareholder
stock prices may drop - answer-risk of purchasing stocks
securities that represent part ownership or equity in a corporation -
answer-stocks
interest - answer-what a bond holder receives
the process of spreading your assets among several different types
of investments to lessen risk - answer-asset allocation
NGPF INVESTING UNIT QUESTIONS WITH CORRECT
AND GRADED 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 - answer-bonds
The process of setting money aside to increase wealth over time for
long-term financial goals such as retirement - answer-investing
money put aside for future use; growing your money is not the top
objective - answer-savings
interest earned on both the principal amount and any interest
already earned - answer-compound interest
interest paid on the principal alone - answer-simple interest
low risk
emergency fund - answer-reasons to put money in a savings
account
keep investments diverse
don't be too risky
keep money invested for a long period of time - answer-tips for first
time investors
, Page 2 of 6
variety - answer-diversity
a market for buying and selling stock - answer-stock exchange
capital gains
dividends - answer-two ways to profit from owning stocks
The positive difference between the purchase price of a stock and its
sale price. - answer-capital gains
payments of cash from a corporation to its stockholders - answer-
dividends
an owner of shares in a company - answer-shareholder
stock prices may drop - answer-risk of purchasing stocks
securities that represent part ownership or equity in a corporation -
answer-stocks
interest - answer-what a bond holder receives
the process of spreading your assets among several different types
of investments to lessen risk - answer-asset allocation
