Special Drawing Rights (SDRs): What They Are and How the IMF's Reserve Asset Works
Warren Team
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Key terms
- AssetAnything of value that an individual or company owns, such as cash, investments, real estate, or personal property. Assets are the foundation of building wealth.
- Asset AllocationAn investment strategy that balances risk and reward by dividing investments among different asset categories, such as stocks, bonds, and cash, based on goals and risk tolerance.
- Room and BoardThe combined cost of housing and meal plans at a college or university, which is a significant portion of the overall cost of attendance. Room and board costs vary depending on whether you live on campus, off campus, or at home, and the type of meal plan you select. Many colleges require first-year students to live on campus and purchase a meal plan.
- Asset ClassA group of investments that share similar characteristics and behave similarly in the marketplace. The major asset classes include stocks, bonds, real estate, commodities, and cash equivalents. Diversifying across asset classes reduces portfolio risk.
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