Study4MObrien

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School

Saint Charles Community College *

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PERSONAL F

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Finance

Date

Feb 20, 2024

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docx

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5

Uploaded by ColonelOstrich2551

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Name: Madeleine O'Brien Date: July 16, 2022 Graded Assignment Section 5 Study Questions Instructions Save the file in your Finance folder, and name it with Study, the section number, and your first initial and last name. For example, Jessie Robinson's study questions for Section 1 would be named Study1JRobinson. Answer the questions for each lesson on the same day that you read the lesson. Save the file before closing it each day. Then turn in your answers to the study questions at the end of the section. Review Lesson 4 of the Course Overview for instructions about turning in your study questions. Assignment Total score: ____ of 12.0 points Answer each question fully. Complete sentences are not necessary. Lesson 1 (Score for Question 1: ___ of 0.5 points) What is a money market account? Answer: Invests your money in low risk investments with predictable interest rates. (Score for Question 2: ___ of 0.5 points) What is a liquidation policy? Answer: Tells you when and how you're able to remove money from the account. (Score for Question 3: ___ of 0.5 points) What is simple interest? Answer: Is interest gained only on the principle amount of an account. (Score for Question 4: ___ of 0.5 points) What is compound interest? Answer:
Is the interest that is added to the principal in the acount, so that the interest you receive starts to generate its own interest. (Score for Question 5: ___ of 0.5 points) What is the time value of money? Answer: Is the assumption that money is worth more the sooner it is received. (Score for Question 6: ___ of 0.5 points) Name a strategy for saving money. Answer: Collet coins. Lesson 2 (Score for Question 1: ___ of 0.5 points) What is investing? Answer: When you give your money, time, or energy to something in order to get a reward in the future usually financial reward. (Score for Question 2: ___ of 0.5 points) What is financial risk? Answer: The possibility of losing money. (Score for Question 3: ___ of 0.5 points) What is diversification? Answer: Is an investment strategy in which you spread out your investments among many different types. (Score for Question 4: ___ of 0.5 points) What is risk tolerance? Answer: The amount of risk you are able to handle without being too negatively affected by failed investments. (Score for Question 5: ___ of 0.5 points)
What are debt investments? Answer: Investments without ownership that promised a specific return on the invetment. (Score for Question 6: ___ of 0.5 points) What are equity investments? Answer: Investments in the ownership of something, such as a company or real estate, with the hope that the investment will increase in value and be worht more ar some future date. Lesson 3 (Score for Question 1: ___ of 0.5 points) What are stocks? Answer: A popular type of equity investment in which you can buy practial ownership of a company in a tiny fractional amount. (Score for Question 2: ___ of 0.5 points) What are bonds? Answer: A type of debt investment in which you lend money to a company or a government, and the company or government gives you a document. (Score for Question 3: ___ of 0.5 points) What is fraud? Answer: Illegal, dishonest behavior by an individual or company. (Score for Question 4: ___ of 0.5 points) What is an annuity? Answer: An agreement you can make with an insurance company in which you pay the company a specific amount of money. (Score for Question 5: ___ of 0.5 points)
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What is microfinance? Answer: Providing loans or other financial services to low income individuals or small groups who can't access banks or wouldn't qualify for loans. (Score for Question 6: ___ of 0.5 points) What is venture capital? Answer: Money used to fund a business in its early stages. Lesson 4 (Score for Question 1: ___ of 0.5 points) What is a 401(k) account? Answer: A common type of retirement account. (Score for Question 2: ___ of 0.5 points) What is a mutual fund? Answer: A company that takes money from many investors, pools that money together, and then invests the money in stocks, bonds, other securities, or a combination of these. (Score for Question 3: ___ of 0.5 points) What is a broker? Answer: A finance professional who buys and sells stock and other securities on behalf of an investor. (Score for Question 4: ___ of 0.5 points) Name a stock market indicator in the U.S. Answer: Dow Jones Infustrial Average. (Score for Question 5: ___ of 1.0 points) Name at least two pieces of information that might be found in stock listings. Answer: 52 week hi/low, the highest and lowest price the stock has sold for over the past 52 weeks.
Stock, the name of the company.