1. Choose whether the statement is True or False (1 pt each)

True

False

Statement

Your savings account is a High-Risk investment.

A security is a catch-all term for things like stocks, bonds, or CDs.

When you buy a stock, you're SELLING a tiny little piece of an actual company.

Diversification means spreading your money out among different kinds of investments.

Return on Investment (ROI) is how much money you MAKE or LOSE on YOUR investments.

1. Imagine that the interest rate on your savings account is 1 percent a year and inflation is 2 percent a year. After one year, would the money in your account: (a). buy more than it does today, (b). Be exactly the same, or (c). less than today? (5 pts)
2. More
3. Exactly the same
4. Less