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Questions and Answers
What is a bond?
What is a bond?
- An investment fund managed by a professional
- A loan to a company or government (correct)
- A savings account with fixed interest
- A type of stock ownership
An ETF operates like a mutual fund but trades like a stock.
An ETF operates like a mutual fund but trades like a stock.
True (A)
What is the term for profit obtained from selling an asset for more than its purchase price?
What is the term for profit obtained from selling an asset for more than its purchase price?
Capital Gains
A ______ is a collection of all investments owned by an individual.
A ______ is a collection of all investments owned by an individual.
Match the following financial terms with their definitions:
Match the following financial terms with their definitions:
Flashcards
Bond
Bond
A loan given to a company or government, with the company or government paying back the loan amount with interest.
Mutual Fund
Mutual Fund
A collection of investments (stocks, bonds, etc.) managed by a professional.
Stock
Stock
Ownership in a company, potentially earning profits if the value of the company increases.
Equity
Equity
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RRSP
RRSP
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Study Notes
Financial Literacy Review
- Bond: A loan to a company or government; they pay back with interest.
- Mutual Fund: A group pools money to invest in stocks, bonds, or other assets, managed by a professional.
- Stock: Owning a portion of a company; profits if the company does well.
- Equity: Amount owned after all debts are paid.
- ETF (Exchange Traded Fund): A collection of investments (stocks or bonds) bought and sold like a stock.
- Index: Measures how a group of investments (like stocks) perform overall.
- Capital Gains: Profit from selling something for more than purchased.
- Liquidity: How easily something can be converted to cash.
- Liquidate: Selling assets to get cash.
- Term Deposit: A savings account with a fixed time period; earns interest.
- Fixed Income: Investments (like bonds) that provide steady, regular payments.
- Time Management: Planning to achieve financial goals effectively.
- Time Horizon: The duration money is kept invested.
- Advisor: A financial professional who guides on savings and investments.
- Broker: Helps buy and sell investments (stocks).
- Investment Profile: A person's investment style (risk tolerance and goals).
- Portfolio: Collection of all investments.
- TFSA (Tax-Free Savings Account): Canadian account for tax-free investment growth.
- RRSP (Registered Retirement Savings Plan): Canadian retirement saving plan; taxes paid later.
- Conservative Investing: A low-risk strategy to achieve safe, steady growth.
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