| A | B |
|---|
| Rate of return | total interest earned divided by original deposit |
| Risk | chance of loss |
| Liquidity | ease with which an investment can be changed into cash |
| What is resistance to inflation? | Will rate of return keep up with inflation |
| What is compounding interest? | Earning interest on interest |
| What is the formula for rate of return? | Total interest earned/original deposit |
| Yield | rate of return |
| Low risk investments | savings |
| High-risk investments | speculative stocks |
