Financial Planning: Saving, Investing, and Risk
Management Principles UPDATED ACTUAL
Questions and CORRECT Answers
, 2 Stock
3 Bond 4 Portfolio
The process of setting goals, developing a plan to
Financial Planning achieve those goals, and managing resources to meet
those goals.
Setting aside money for future use, typically in a low-
Saving
risk account.
Allocating money into assets with the expectation of
Investing
generating a profit or income.
Different avenues available for investing money,
Investment Options
including stocks, bonds, real estate, and mutual funds.
Financial accounts specifically designed for saving
Retirement Accounts
and investing for retirement, such as 401(k)s and IRAs.
A formula used to estimate the number of years
required to double the invested money at a given
Rule of 72
annual rate of return, calculated by dividing 72 by the
annual interest rate.
The potential for losing money or not achieving the
Risk in Investments
expected returns on an investment.
The oversight of financial markets by government
Financial Markets
agencies to protect investors and ensure fair trading
Regulation
practices.
Management Principles UPDATED ACTUAL
Questions and CORRECT Answers
, 2 Stock
3 Bond 4 Portfolio
The process of setting goals, developing a plan to
Financial Planning achieve those goals, and managing resources to meet
those goals.
Setting aside money for future use, typically in a low-
Saving
risk account.
Allocating money into assets with the expectation of
Investing
generating a profit or income.
Different avenues available for investing money,
Investment Options
including stocks, bonds, real estate, and mutual funds.
Financial accounts specifically designed for saving
Retirement Accounts
and investing for retirement, such as 401(k)s and IRAs.
A formula used to estimate the number of years
required to double the invested money at a given
Rule of 72
annual rate of return, calculated by dividing 72 by the
annual interest rate.
The potential for losing money or not achieving the
Risk in Investments
expected returns on an investment.
The oversight of financial markets by government
Financial Markets
agencies to protect investors and ensure fair trading
Regulation
practices.
