Ch.11 Learning Demonstration

4. A government debt obligation that has a maturity of 2-10 years, backed by the treasury department.
5. The potential for an investment to increase the capital of the investor.
6. The risk that inflation will undermine the value of an investment
8. This is a formula that calculates how long it will take for an investment to double in value using the rate of return.
9. The risk of an investment losing value due to decreasing profits of a business.
11. A government debt obligation that has a maturity of over 10 years, backed by the treasury department.
13. The risk of an investment losing value due to fluxuations in market variables.
15. A short term government debt obligation with a maturity of one year or less, backed by the treasury department.
16. Creating a portfolio with a variety of investments in order to reduce risk.
17. The ease at which an investment can be bought or sold without impacting its value.
18. The higher the ____, the higher the potential _____.
20. This is a higher risk option for accumulating money.

1. A short term loan that is approved before the money is actually needed.
2. This is a way to measure the creditworthiness of a bond issuer.
3. The risk of an investment losing value due to changes in interest rates.
7. Dividing your investments into different assets.
10. This type of savings is used to cover the expenses of a future unforeseen emergency.
12. An investment with low risk, but lower potential return.
14. This a lower risk option for accumulating money.
19. The potential for an investment to cause financial harm.