Chapter 19 Business quiz

What are the three savings accounts in chapter 19?

High yield, Traditional, Basic

What is a high yield savings account?

A high yield savings account is a type of savings account that typically offers a higher interest rate compared to traditional savings accounts, allowing account holders to earn more on their savings.

What is a Basic savings account?

A Basic savings account is a type of bank account that allows individuals to deposit money, earn interest on the balance, and withdraw funds as needed.

What is stock?

A stock is a piece of a company you can buy

what is a bond

A bond is like a loan

What are securities?

securities are stocks and bonds

What do you need to buy securities?

brokerage account and a retirement account

What is compound interest?

Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods. It allows for exponential growth of an investment over time.

What does compound interest have to do with investing?

What is an exchange traded fund?

It is a basket of securities ( bonds and stocks ) and you can buy or sell with a brokerage account

who provides interest rates for bonds?

The federal reserves does. They provide the interest rate for bonds

What is a mutual fund?

Its a pool of securities that investors can buy pieces of

How are collectible items valued?

They are valued by supply and demand.

what are 3 types of homes

Renting, Buying a site home, Buying a manufactured home

How is money made from a bond?

A bond pays through interest.