Untitled Flashcards Set

1. What is the most fundamental economic problem? scarcity

2. What causes scarcity? Limited resources to meet unlimited wants/needs

3. What is the opportunity cost of a 30 year loan? Less money left in the long term

4. What are the 2 reasons that people don’t save? They want instant gratification & easier  to use credit

5. Which type of investment is riskier? Mutual funds

6. Whats the relationship between risk and reward? Higher risk higher reward, lower risk, lower reward

7. When your investing what are 3 factors that you can change? Interest rate, length of time, amount invested.

8. Whats the difference between the S&P 500, NYSE? S&P 500 is a report of how the top 500 companies are doing and the NYSE is an actual stock exchange 

9. Which type of investment has the highest liquidity risk? Real estate

10. How many credit scores do you have? one 

When you file an insurance claim what do you pay first? deductible