Principles of Investment

Question 1

Which rule is important to remember when evaluating risk?

Revolt · Accepted Answer

Investments believed to be unpredictable are more risky.

Question 2

Monetary policy is directly implemented by .

Revolt · Accepted Answer

the Federal Reserve

Question 3

Loans that are considered to be high risk typically have a interest rate.

Revolt · Accepted Answer

high

Question 4

A decrease in the amount of money available to investors is most likely to result in .

Revolt · Accepted Answer

less investment

Question 5

Interest rates are generally expressed as a(n) of the loan.

Revolt · Accepted Answer

percentage

Question 6

The length of time before a loan must be repaid is called the of the loan.

Revolt · Accepted Answer

term

Question 7

How much interest will Pablo receive from his investment?

Revolt · Accepted Answer

$250 due to a real interest rate of 5 percent

Question 8

During a period of economic growth, investors are likely to take risks and invest funds.

Revolt · Accepted Answer

more

Question 9

Fiscal policy seeks to affect the economy and interest rates by directly modifying .

Revolt · Accepted Answer

taxation and spending

Question 10

The inflation on the amount remaining after taxes and fees is .

Revolt · Accepted Answer

$142.50

Principles of Investment Answers