For questions 1-10 , fill in the blank with the letter of the term that best matches the description.

a. risk averse
b. savings investment
c. lump sum
d. certificates of deposit
e. down payment
f. short-term goal
g. venture capital
h. long-term financial goal
i. investment bank
j. risk seeking

1. savings plan or method you can employ to save your money over time
2. a financial goal to be achieved within a period of time less than 12 months
3. a financial goal to be achieved within a period of 12 months or more
4. the part of a purchase price of a high-priced item that the buyer pays, usually in cash, and it's not included in the loan amount.
5. a one-time payment not expected to recur.
6. an individual who tends to prefer higher risk (possibly higher reward) investments.
7. an individual who tends to prefer lower risk (lower return) investments.
8. an investment by an individual by an individual or venture capital corporation used to start a new or unusual undertaking.
9. a firm that act as intermediary between a company that needs additional money and potential investors.
10. a document representing the money an individual deposits into a financial institution for a set period of time as a specified interest rate.

you in advance! < 3

Savings plan or method you can employ to save your money over time. B. Savings Investment. When you use a savings investment, you are investing your money into a bank and allowing it to accumulate interest. Overtime, you will earn funds on the initial amount of money that was set up into the account.  

2. A financial goal to be achieved within a period of time less than 12 months. F. Short-Term Goal A short-term goal is used to achieve something in in the close future. Most short-term goals are a few weeks in length and result in a complete long-term goal when finished.  

3. A financial goal to be achieved within a period of 12 months or more. H. Long-Term Financial Goal A long-term goal is compromised of many short-term goals or tasks to complete a task that takes longer. As mentioned, a long-term goal is usually over 12 months of time before it ends up being completed.  

4. The part of a purchase price of a high-priced item that the buyer pays, usually in cash, and it's not included in the loan amount. E. Down Payment A down payment is usually required for a vehicle or a home. These loans require money to be put down in order to start the processing of buying the larger item.


5. A one-time payment not expected to recur. C. Lump Sum A lump sum is a term used to describe a large amount of money paid to a person or business and not again. An example is if you play the lottery and win, you can either take your money in one lump sum, or periodically over time.

6. An individual who tends to prefer higher risk (possibly higher reward) investments. J. Risk Seeking. Risk seekers are interested in risky events which lead to higher reward if they are successful. The saying “the greater the risk, the larger the reward” pertains to this situation.  

7. An individual who tends to prefer lower risk (lower return) investments. A. Risk Averse Risk adverse is the opposite of risk seeking. These individuals are usually scared to take a risk in the event they lose what they have invested. However, due to being scared of the outcome, they often do not have the greatest returns on their investment.  

8. An investment by an individual by an individual or venture capital corporation used to start a new or unusual undertaking. G. Venture Capital Venture capital is a private equity that is a form of financing to fund small or new businesses with the potential to succeed well.


9. A firm that act as intermediary between a company that needs additional money and potential investors. I. Investment Bank An investment bank is an advisory-based financial area that helps complete transactions based on the needs of their individuals/clients.  

10. A document representing the money an individual deposits into a financial institution for a set period of time as a specified interest rate. D. Certificates Of Deposit A certificate of deposit is commonly known as a CD. A CD has a maturity date and specified fixed interest rate that can be issued at any amount. The funds are stored in the CD until they reach the maturity date.