Unit 6 – Assessment : Putting Your Money to Work

_________ is the amount of money you set aside for a purpose.

A savings account at a bank earns interest and can be accessed with ease at an ATM.

A Certificate of Deposit is another type of savings account, which earns less interest than a savings account.

What type of account allows you to save for your retirement, independent of your employer, with tax-free growth, or on a tax-deferred basis?

A 401K contribution can be deducted from an employee’s paycheck each pay period to be set aside for retirement.

__________ is putting your money into services or products in order to gain value.

Stock is the money that you invest.

A family business or income earning properties that you might own, like parking lots or rental houses, are examples of what type of investments?

What type of risk applies when you loan money to a person or institution (the borrower) and they cannot afford to pay you back, or meet the terms and conditions of your contract.

_____________ are shares of ownership in a company.

Delayed gratification does not require a person to wait for a later time to enjoy a reward.

An_____________ buyer is someone who purchases without prior planning.

A person delaying gratification is expecting to get a bigger reward at a later period of time.

A very famous experiment on delayed gratification is the ____________________.

Delayed gratification does not require discipline.