3.6 Investment Strategies Answers

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Long-term investments tie up money for .

Answers:
Long-term investments tie up money for .:more than one year
One reason why individuals focus on long-term investments is to .:save for their retirement
A(n) allows both employees and employers to contribute to a retirement account.:401(k)
2
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One reason why individuals focus on long-term investments is to .

A
pay for immediate expenses
B
save for their retirement
C
grow money quickly
4

✔ about 14 yearsabout 67 yearsX about 77 years

A
✔ about 14 years
B
about 67 years
C
X about 77 years
5

Which investment options should Angela consider?

A
stocks
B
commodities
C
mutual funds
D
CDs
6

buying commoditiesshort-term investing✔ diversifying investments

A
buying commodities
B
short-term investing
C
✔ diversifying investments
7

What should investors consider when planning for their retirement? Check all that apply.the amount an employer will match for a 401(k)the contributions an employer will make to an IRAthe ideal age to establish a particular retirement planthe amount an investor is allowed to contribute annuallythe tax laws and breaks related to different retirement plansthe amount that can be withdrawn early without getting taxed

A
the amount an employer will match for a 401(k)
B
the contributions an employer will make to an IRA
C
the ideal age to establish a particular retirement plan
D
the amount an investor is allowed to contribute annually
E
the tax laws and breaks related to different retirement plans
F
the amount that can be withdrawn early without getting taxed
10

What are some characteristics of short-term investments? Check all that apply.They usually last for less than a year.They are considered low risk.They typically include both stocks and bonds.They typically help investors save for retirement. They can include savings accounts and CDs.

A
They usually last for less than a year.
B
They are considered low risk.
C
They typically include both stocks and bonds.
D
They typically help investors save for retirement.
E
They can include savings accounts and CDs.
11

What are some characteristics of short-term investments? Check all that apply.They usually last for less than a year.They are considered low risk.They typically include both stocks and bonds.They typically help investors save for retirement. They can include savings accounts and CDs.

A
They usually last for less than a year.
B
They are considered low risk.
C
They typically include both stocks and bonds.
D
They typically help investors save for retirement.
E
They can include savings accounts and CDs.
12

Long-term investments tie up money for .

A
more than one year
B
less than one year
13

Which investment options should Angela consider?

A
stocks
B
commodities
C
mutual funds
D
CDs
14

Which investment practice is Cody following?

A
buying commodities
B
short-term investing
C
diversifying investments
15

What should investors consider when planning for their retirement? Check all that apply.the amount an employer will match for a 401(k)the contributions an employer will make to an IRAthe ideal age to establish a particular retirement planthe amount an investor is allowed to contribute annuallythe tax laws and breaks related to different retirement plansthe amount that can be withdrawn early without getting taxed

A
the amount an employer will match for a 401(k)
B
the contributions an employer will make to an IRA
C
the ideal age to establish a particular retirement plan
D
the amount an investor is allowed to contribute annually
E
the tax laws and breaks related to different retirement plans
F
the amount that can be withdrawn early without getting taxed
16

✔ focusing on sunk costsfocusing on the familiarX not knowing his personality

A
✔ focusing on sunk costs
B
focusing on the familiar
C
X not knowing his personality
17

Investments with less liquidity include .

A
checking accounts
B
personal property
C
mutual funds
18

One reason why individuals focus on long-term investments is to .

A
pay for immediate expenses
B
save for their retirement
C
grow money quickly
19

Which investment shortcoming has he failed to avoid?

A
focusing on sunk costs
B
focusing on the familiar
C
not knowing his personality
20

✔ sell the failing stocktry to take more risksX be more conservative

A
✔ sell the failing stock
B
try to take more risks
C
X be more conservative

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