Types of Investments

From cash equivalents to stocks, you have your choice when it comes to forms of investing. Some can steadily increase savings while others allow you to benefit as their value rises.

Watch the video to learn about different Types of Investments, then test your knowledge at the end of the lesson.

When choosing your investment strategy, you should take into consideration:

A. Growth, credit, and income

B. Gains, risk, and budget

C. Gains, interest, and CDs

D. Cost, risk, and cash flow

Cash equivalents are lending investments where you give the issuer money, usually for periodic interest earnings.

A. True

B. False

What is the difference between EE bonds and I bonds (Series I bond)?

A. EE bonds are loans that investors make to local governments, while I bonds vary by risk, maturity and yield.

B. EE bonds vary by risk, maturity and yield, while I bonds are loans that investors make to local governments.

C. EE bonds earn a rate that can change every 6 months, while I bonds have a fixed interest rate.

D. EE bonds have a fixed interest rate, while I bonds earn a rate that can change every 6 months.